InterContinental Hotels Group (IHG) has agreed to sell the InterContinental Hong Kong for US$938 million.
The property will be bought by Supreme Key Limited, a consortium of investors, which now plans to invest in a significant refurbishment of the hotel. This is expected to commence in 2017 and will take place over a period of approximately 18 months.
The hotel will continue to operate under the InterContinental brand, with IHG retaining a 37-year management contract, plus three further 10-year extension rights, giving it an expected contract length of 67 years. Management fees are initially expected to be approximately US$8m per year, increasing following the refurbishment.
“The InterContinental Hong Kong is an exceptional property and an iconic hotel in our portfolio,” said Richard Solomons, CEO of IHG. “This transaction completes the disposals of our major owned assets. Since our formation in 2003 we have disposed of almost 200 hotels for gross proceeds of almost US$8 billion.
“Looking forward, we will continue to focus on the disciplined execution of our winning strategy for sustainable high quality growth,” he added.
Situated on the Kowloon waterfront, InterContinental Hong Kong opened in 1980 and now has 503 rooms and suites. It has been owned and operated by IHG since 2001.
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