Tuesday February 18th, 2014 - 10:34AM
SAN FRANCISCO—In keeping with its long-term asset-light strategy, IHG sold the 383-room InterContinental San Francisco Mark Hopkins for $120 million to a joint venture composed of affiliates of Woodridge Capital Partners and funds managed by Oaktree Capital Management LP.
IHG will retain management of the 88-year-old hotel, which IHG has held for three decades via a lessee interest and a freehold effective 2010.
This is the third major InterContinental property in 12 months that the U.K.-based company has shed, with total gross proceeds of nearly $830 million, according to IHG CEO Richard Solomons. IHG disposed of the InterContinental London Park Lane in second-quarter 2013 and in fourth-quarter let go of its 80% interest in its flagship InterContinental New York Barclay, a deal which is expected to close in March.
The joint venture has indicated it will infuse $20 million to enhance the property, which generated revenues of $42 million in 2013, according to IHG.
Woodridge Capital Partners, LLC is a Los Angeles, CA-based real estate development and Investment company, and through its affiliates, is an owner and developer of a broad range of hotel, resort, residential, and commercial properties throughout the United States.
Also based in Los Angeles, Oaktree Capital Management, LP is a global investment manager specializing in alternative investments, with $83.6 billion in assets under management as of December 31.