10th Jul 2015 06:10
LONDON (Alliance News) - InterContinental Hotels Group PLC on Friday said it has agreed to sell its stake in the InterContinental Hong Kong to Supreme Key Ltd for USD938 million.
FTSE 100-listed IHG said Supreme Key is a consortium of investors advised and managed by Gaw Capital Partners, the Hong Kong-based investment house. The buyer has paid IHG a cash deposit of USD94 million, with the remainder to be paid on completion.
In addition, Supreme Key has committed to invest in a refurbishment of the hotel, which is set to start in 2017 and which will take place over around 18 months. IHG will retain a 37-year management contract for the hotel, with three ten-year extension rights. It expects to be paid management fees of around USD8 million a year, which will increase after the refurbishment is completed.
The five-star hotel has three Michelin-starred restaurants and a range of meeting and banqueting facilities, IHG said. It is located on the Kowloon waterfront and has 503 guest rooms, including 87 suites.
"The InterContinental Hong Kong is an exceptional property and an iconic hotel in our portfolio. This sale highlights the enduring appeal of InterContinental as one of the world's leading luxury hotel brands," said Richard Solomons, IHG's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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