13th Mar 2006 07:02
InterContinental Hotels Group PLC13 March 2006 13 March 2006 INTERCONTINENTAL HOTELS GROUP SALE OF 24 HOTELS IN CONTINENTAL EUROPE FOR €352MILLION (£240m) InterContinental Hotels Group PLC ("IHG") today announces it has sold aportfolio of 24 hotels (4,903 rooms) to a subsidiary of Westbridge HospitalityFund LP ("Westbridge"). Westbridge is a hospitality investment fund managed byWestmont Hospitality, one of IHG's largest franchisees. The portfolio has beensold for €352m (approximately £240m), marginally above net asset value. Proceedsto IHG in cash and debt assumption are €345.2m (before transaction costs), withthe balance of €6.8m relating to third party minority interests. The hotels have been sold to Westbridge with 15 year franchise contracts.Normalised franchise fees are expected to be approximately €4m per annum. Thehotels are located in Continental Europe and operate under the Crowne Plaza,Holiday Inn, and Express by Holiday Inn brands. The transaction is expected tocomplete in the second quarter of 2006. The hotels generated revenues of €140m, EBITDA of €28m and EBIT of €11m in 2005. These disposals represent a continuation of IHG's strategy to grow its managedand franchised business and reduce asset ownership. Since separation in April2003, IHG has disposed of, or is in the process of disposing of, 175 hotels witha net asset value of more than £2.8bn. Aggregate proceeds received to date havebeen above net asset value. IHG has announced the return of £2.75bn toshareholders, of which £2.0bn has already been completed. Proceeds received fromthe disposal will be used for investment, returns to shareholders, or managingIHG's debt position. Andrew Cosslett, Chief Executive of IHG, commented: "This deal is another significant step in the transformation of IHG. As we focuson managing and franchising hotels, it is essential that we continue to developour relationships with key partners on a global basis. Westmont Hospitality isone of IHG's largest franchisees, and we are delighted to extend our strongrelationship with them." For further information, please contact:Investor Relations (Gavin Flynn, Paul Edgecliffe-Johnson): +44 (0) 1753 410 176 +44 (0) 7808 098 972Media Enquiries (Leslie McGibbon): +44 (0) 1753 410 425 +44 (0) 7808 094 471 Note 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,over 3,600 hotels and 537,000 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. 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 the media to download free of charge from www.vismedia.co.uk . This includes profile shots of the key executives. Transaction details: 1. The purchasing entity is Cooperatie Westbridge Europe 1 U.A. 2. The net asset value of the assets sold was €327m. 3. No material tax charge arises as a result of the transaction. 4. The assets have been sold on a 15x post fee EBITDA multiple. Disposals announced today: 2005 •mRevenue 140EBITDA 28EBIT 11 Hotel RoomsCrowne Plaza Amsterdam Schiphol 242Crowne Plaza Antwerp 262Crowne Plaza Brussels Airport 315Crowne Plaza Hamburg 285Crowne Plaza Heidelberg 232Holiday Inn Amsterdam 256Holiday Inn Bologna City 162Holiday Inn Brussels Airport 310Holiday Inn Florence 92Holiday Inn Hamburg Kielerstrasse 105Holiday Inn Milan 119Holiday Inn Munich City Centre 580Holiday Inn Paris Republic 318Holiday Inn Vienna South 174Express by Holiday Inn Alicante 120Express by Holiday Inn Berlin 251Express by Holiday Inn Cologne - Muelheim 107Express by Holiday Inn Dortmund 107Express by Holiday Inn Dusseldorf 150Express by Holiday Inn Frankfurt Airport 186Express by Holiday Inn Frankfurt Messe 175Express by Holiday Inn Munich 120Express by Holiday Inn Troisdorf 110Express by Holiday Inn Valencia San Luis 125 Total 4,903 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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