IHG Sells InterContinental London Park Lane
Thursday March 28th, 2013 - 9:54AM H
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LONDON—IHG agreed to sell the InterContinental London Park Lane to Constellation Hotel (Opco) UK S.A., an affiliate of Constellation Hotels Holding Ltd., a Middle East private investment group.
IHG’s leasehold interest in the hotel has been sold for gross cash proceeds of £301.5 million ($457 million). This is 62% above December 31, 2012 net book value.
In addition, IHG secured a 30-year management contract on the hotel, with three, 10-year extension rights at IHG’s discretion, giving an expected contract length of 60 years. Management fees are expected to be approximately £4million ($6 million) per year.
The hotel opened in 1975 and has been wholly owned by IHG since 1999.
According to the company, the hotel generated revenues of $89 million in 2012.
The transaction is expected to close in second quarter, subject to the satisfaction of certain standard conditions.
Tags: • Hospitality • Ownership •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.