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 •
The theme of this year’s ALIS conference was “Don’t Worry, Be Happy.” But, lets face it, there are always going to be some people who aren’t happy unless they are worried about something—whether it’s the Fed potentially raising interest rates or that the price of oil is now too low, threatening to cripple the economies of some foreign nations.