Regent: M-Shaped Consumer Trend in Taiwan Fuels Business Tourism, Launches U.S. Acquisition Drive

By Central News Agency Reporter Jiang Ming-Yan, Taipei, June 16

Regent Hotels & Resorts Chairman Pan Sze-Liang stated today that consumer spending in Taiwan is exhibiting an M-shaped growth pattern. Taiwan is a global core in AI and high-tech industries, with strong export growth, while private consumption is growing steadily. He expressed optimism about business tourism and announced that Regent will actively expand both domestically and overseas in the coming year. The company is currently pursuing acquisition plans for hotels or real estate in major U.S. cities, with updates expected within one to two months.

Regent held its annual shareholders’ meeting today, chaired by Pan. Regarding economic trends, Pan said in a post-meeting interview that consumption is showing 'M-shaped growth.' Taiwan is at the heart of the global AI and high-tech sector, with high export growth slightly boosting private consumption, though overall growth remains gradual. 'High-end consumption growth is relatively favorable for Regent,' he noted.

Looking ahead, Pan expressed confidence in business tourism, driven by Taiwan’s robust technology and export sectors. He cited the recent computer exhibition, which attracted many global tech leaders, noting that 'budgets have全面提升 (significantly increased across the board).' Dining and luxury brands have benefited, and hotels capable of attracting high-end business travelers hold a competitive edge. Additionally, positive stock market trends have fueled growth in luxury spending.

On domestic tourism, Pan acknowledged that long holidays may be affected by outbound travel trends, putting pressure on areas like Hualien. However, Regent continues to grow, supported by business travelers from events like the computer exhibition. Performance at Regent Hotels, dining outlets, and Regent Crystal boutiques remains strong. Room rates this year have increased over 10% compared to last year, and the summer season is expected to be robust.

Overall, Pan noted that international high-tech firms continue to enter Linkou, and Regent plans to open a Silks Place and JustSleep hotel in collaboration with EBC Group in mid-2025. The company will not halt expansion as long as quality property owners approach them. Dining operations will also accelerate. However, labor shortages remain severe, and the government is exploring new labor sources.

Regarding new entrants in Taipei’s Xinyi District—including InterContinental, Park Hyatt, Andaz, and Taiwan’s first Four Seasons Hotel—Pan stated that while these intensify competition, Regent benefits from Taipei’s rising room rates while maintaining differentiation in the Zhongshan District.

Regent is selling 25% of its stake in Regent Hospitality Worldwide (RHW) in two phases. The first phase, involving 13% of shares, was completed in Q1, recognizing a disposal gain of approximately NT$331 million. The second phase, where IHG will acquire an additional 12%, is scheduled for completion by January 31, 2027. After this, Regent’s stake in RHW will drop to 24%. The total transaction value across both phases is $38.5 million USD (approximately NT$1.2 billion).

On the use of cash reserves, Pan confirmed ongoing acquisition efforts in the U.S. hotel or real estate sector, expecting positive news within one to two months. He believes current U.S. commercial real estate prices are favorable.

On RHW’s overseas expansion, Pan said the second location opened in Shanghai at the end of last year, with openings in the U.S. and Bali last year. A new property will open in Saudi Arabia this year, followed by Kyoto next year, and further expansions are planned for New York, the Middle East, Europe, and mainland China.

Domestically, JustSleep opened a new Zhongshan branch. In mid-2025, Regent will open a Silks Place and JustSleep in Linkou in partnership with EBC Group under a management contract. Osaka’s second JustSleep branch is upcoming, and the BOT agreement for Taipei Regent Hotel 'will definitely be renewed,' with priority negotiation rights held.

With simultaneous expansions at home and abroad, Pan expects a significant boost to next year’s operations. 'Non-operating gains from the IHG transaction, combined with core business growth, ensure record-high revenue and profits,' he concluded. (Editor: Pan Yi-Ching) 1150616