25th May 2005 07:03
InterContinental Hotels Group PLC25 May 2005 25 May 2005 INTERCONTINENTAL HOTELS GROUP ANNOUNCES SALE OF CROWNE PLAZA UNITED NATIONS AND COMPLETION OF UK ESTATE DISPOSAL Sale of Crowne Plaza United Nations InterContinental Hotels Group PLC ("IHG") today announces it has agreed to sellits leasehold interest in the Crowne Plaza United Nations in New York to HalifaxHoldings, Inc, an affiliate of Highgate Holdings, for $34 million, marginally inexcess of net book value. Completion is expected to occur in the near future. The Crowne Plaza United Nations (300 rooms) has been sold with a 10 year CrownePlaza franchise agreement. Completion of UK estate disposal IHG further announces the legal completion on the disposal of 73 hotels beingsold in the United Kingdom to LRG Acquisition Limited, a consortium comprisingLehman Brothers Real Estate Partners, GIC Real Estate and Realstar Group ("LRG"), the terms of which were announced on 10th March 2005. £960 million disposal proceeds have been received in cash, with an additional£40 million to be received subject to meeting performance targets over the next3 years. Further transaction details 1. Any tax payable on the sale of Crowne Plaza United Nations has already beenfully provided for. 2. The Crowne Plaza United Nations is a leasehold asset with 35 years remainingon the current lease. 3. The franchise agreement signed in respect of the Crowne Plaza United Nationswill generate ongoing franchise fees for IHG based on a percentage of roomsrevenue. This franchise fee would have equated to $0.8 million in 2004. Since Separation in April 2003, including today's announcement, IHG hasannounced the disposal of 123 hotels with proceeds of approximately £1.8billion. 22 properties remain on the market with a net book value of £420million. Crowne Plaza United Nations disposal announced today: 2004 2003 $m $mRevenue 18.9 16.0EBITDA 3.2 1.2EBIT 1.4 (1.1) Hotel RoomsCrowne Plaza United Nations 300 A list of IHG's owned and leased properties detailing those disposed of, on themarket and not on the market is available at http://www.ihgplc.com/investors For further information, please contact: Investor Relations (Gavin Flynn, Paul Edgecliffe-Johnson): +44 (0) 1753 410 176 +44 (0) 7808 098 972 Media Enquiries (Leslie McGibbon): +44 (0) 1753 410 425 +44 (0) 7808 094 471 Notes to Editors InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG(ADRs)) is the world's largest hotel group by number of rooms. InterContinentalHotels Group owns, manages, leases or franchises, through various subsidiaries,more than 3,500 hotels and 534,000 guest rooms in nearly 100 countries andterritories around the world. The Group owns a portfolio of well recognised andrespected hotel brands including InterContinental(R) Hotels & Resorts, CrownePlaza(R) Hotels & Resorts, Holiday Inn(R) Hotels and Resorts, Holiday InnExpress(R), Staybridge Suites(R), Candlewood Suites(R) and Hotel IndigoTM, andalso manages the world's largest hotel loyalty programme, Priority Club(R)Rewards, with 23.7 million members worldwide. In addition to this,InterContinental Hotels Group has a 47.5% interest in Britvic, one of the twoleading manufacturers of soft drinks, by value and volume, in Great Britain. InterContinental Hotels Group offers information and online reservations for allits hotel brands at www.ichotelsgroup.com and information for the Priority ClubRewards programme at www.priorityclub.com. For the latest news from InterContinental Hotels Group, visit our online PressOffice at www.ihgplc.com/media. High resolution images to accompany this announcement are available for themedia to download free of charge from www.vismedia.co.uk . This includes profile shots of the key executives. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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