12th Jul 2007 09:22
InterContinental Hotels Group PLC12 July 2007 12 July 2007 IHG ANNOUNCES SALE OF INTERCONTINENTAL MONTREAL InterContinental Hotels Group PLC ("IHG") announces the sale of the 357 roomInterContinental Montreal, Canada to Sweden-based Pandox AB ("Pandox") forCAN$49 million (US$46 million) in cash. IHG will continue to manage the hotelunder a 30 year management contract, including contract renewals. Pandox is purchasing the hotel from IHG, which owns 74.11 percent, and Cadim, adivision of the Caisse de depot et placement du Quebec. which owns 25.89percent. Pandox will invest a further CAN$11 million (US$10 million) torenovate the hotel. Pandox also owns the Crowne Plaza Brussels City Centre,Crowne Plaza Antwerp and Holiday Inn Brussels Airport. The hotel generated revenues of US$22.5m, EBITDA of US$3.6m and EBIT of US$2.8min 2006, and had a net book value of US$30.2m at 31 March 2007. The sale is a continuation of IHG's strategy of growing its management andfranchise businesses and reducing asset ownership. Since 2003, IHG has disposedof 178 hotels globally with a net asset value of over £2.9bn, with proceeds inexcess of net book value. "We had previously announced that the InterContinental Montreal was on themarket as part of our ongoing strategy to reduce our asset intensity. Ourobjective is only to own real estate where it drives the growth of our brands,"said Andy Cosslett, Chief Executive of IHG. "The InterContinental Montreal is a great property with tremendous potential tobe a top of mind, leading business and meetings hotel in the city centre, saidAnders Nissen, CEO, Pandox AB. "This is our fourth IHG branded hotel and we areexcited about expanding our portfolio into North America." Asset disposal programme detail Number of hotels Proceeds Net book valueDisposed since April 2003 178 £3.0bn £2.9bnRemaining hotels 21 £0.9bn For a full list please visit www.ihg.com/Investors Notes to Editors: InterContinental Hotels Group InterContinental Hotels Group PLC (IHG) of the United Kingdom (LON:IHG, NYSE:IHG(ADRs)) is the world's largest hotel group by number of rooms. IHG owns,manages, leases or franchises, through various subsidiaries, over 3,700 hotelsand more than 558,000 guest rooms in nearly 100 countries and territories aroundthe world. IHG owns a portfolio of well recognized and respected hotel brandsincluding InterContinental(R) Hotels & Resorts, Crowne Plaza(R) Hotels &Resorts, Holiday Inn(R) Hotels and Resorts, Holiday Inn Express(R), StaybridgeSuites(R), Candlewood Suites(R) and Hotel Indigo(R), and also manages theworld's largest hotel loyalty program, Priority Club(R) Rewards with over 33million members worldwide. The company pioneered the travel industry's first collaborative response toenvironmental issues as founder of the International Hotels and EnvironmentInitiative (IHEI). The IHEI formed the foundations of the Tourism Partnershiplaunched by the International Business Leaders Forum in 2004, of which IHG isstill a member today. The environment and local communities remain at the heartof IHG's global corporate responsibility focus. IHG offers information and online reservations for all its hotel brands atwww.ihg.com and information for the Priority Club Rewards program atwww.priorityclub.com. For the latest news from IHG, visit our online Press Office at www.ihg.com/media Pandox AB Pandox is one of the leading players in the hotel property market in Europe.Their portfolio consists of 44 hotels, with a total of approximately 10,000rooms located in Sweden, Denmark, Germany, Belgium, Switzerland, the UK, theBahamas and Canada. Pandox hotels operate under well known international brands,or through independent distribution channels. Cadim Cadim, a division of the Caisse de depot et placement de Quebec and a member ofthe Caisse's Real Estate Group, is a global real estate investment manager.Cadim invests in a diversified range of equity and financing products through anetwork of affiliates and prominent partners in the United States, Europe andAsia. Cadim is an opportunistic investor whose success relies on its capacity toclose large-scale transactions and to take advantage of key leverageopportunities. As at 31 December 2006, total assets under management totaled$36.3 billion. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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