SHANGHAI - InterContinental Hotels Group (IHG) on Wednesday announced that it has acquired a 51-percent stake in Regent Hotels and Resorts for $39 million in cash.

Regent currently has six hotels, of which, three are in Beijing, Chongqing and Taipei. Three more hotels are in the pipeline, according to Jolyon Bulley, CEO of IHG Greater China.

The acquisition is one of IHG's new strategic initiatives focused on expanding its footprint in the fast-growing luxury segment, according to IHG.

IHG said it will have the option to acquire the remaining 49-percent interest in phases starting 2026.

"As one of the pioneers in defining luxury hotels both in Asia and around the world, Regent is an excellent addition to IHG's portfolio of brands," said IHG chief executive Keith Barr in a statement. "We see a real opportunity to unlock Regent's enormous potential and accelerate its growth globally."

Bulley, while echoing Barr, said that Regent enjoys a high reputation in Asia and that the acquisition can help with Regent's development in the Chinese market.

IHG has about 200 hotels worldwide, and 40 are located in China.