Hospitality Experience
Six Senses Due Diligence
As part of the acquisition due diligence support for IHG in acquiring the Six Senses Hotel Chain, we have not only assessed the market potential of the Six Senses Felicité Island Resort in the Seychelles, but also provided financial projections to establish its estimated future profit generating ability.
Project Scope
Understood. Here’s the revised version:
Our firm was retained to perform comprehensive due diligence on Six Senses Hotels Resorts Spas as part of its acquisition by InterContinental Hotels Group (IHG). The transaction, valued at $300 million, required a meticulous evaluation of Six Senses‘ assets, operations, and strategic positioning within the luxury wellness sector to ensure an informed investment decision.
The process involved a detailed operational assessment of Six Senses’ global portfolio, which included 16 operating hotels and resorts, 18 signed management contracts in the pipeline, and 37 branded spas under the Six Senses and LivNordic names. This required on-site inspections, in-depth discussions with management, and performance analyses to assess operational efficiency, brand consistency, and future growth potential.
Financial due diligence was conducted to evaluate the group’s profitability and financial health. This included a thorough review of revenue streams, management contracts, and lease agreements to identify any financial risks or obligations that could impact the acquisition. Market positioning and brand analysis were also key components, examining customer perceptions, competitive standing, and Six Senses’ alignment with IHG’s long-term strategic objectives.
Given Six Senses’ reputation for sustainability and wellness, the evaluation extended to the brand’s initiatives in these areas to ensure they aligned with IHG’s corporate values. Legal and compliance reviews were conducted to assess regulatory adherence, contractual obligations, and potential risks, ensuring a smooth post-acquisition transition.
The project was executed under tight deadlines, requiring seamless collaboration across multiple jurisdictions to cover properties and projects in 26 countries. The final analysis equipped IHG with a clear understanding of the Six Senses brand and its operational and financial landscape. This insight was instrumental in finalising the acquisition, significantly enhancing IHG’s portfolio within the luxury and wellness hospitality sectors.
