Formosa International Hotels Corporation has announced a new team for Regent Hotels and Resorts after acquiring it from Carlson Hospitality Group and Brussels-based Rezidor Hotel Group.
Formosa International Hotels Corporation that has run its main hotel in Taipei under the Regent brand for 20 years, has bought the international luxury hotel brand to expand abroad.
Grand Formosa Regent Hotel was managed by the international brand for the first three years after its opening, but from 1993 the operation was handed over to a Taiwanese management team.
When asked about the reason for acquiring the brand from the U.S.-based Carlson company, management said that their hotel was the most profitable among all Regent hotels and that he knows how to maintain the brand’s tradition and reputation.
Besides knowing the brand, the deal has less risk than most merger and acquisition cases as it brought in no personnel from Carlson and most importantly, since buying a brand is essentially buying intellectual property rights, they scrutinized the contract with atleast 10 law firms.
With the US$56 million deal, the hotel saves an annual fee of US$1 million for running Grand Formosa Regent under the brand and gain management contracts to run 15 more hotels, which would be impossible if they set up their own brand.
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