Iconic InterContinental hotel sold

Iconic InterContinental hotel sold

The luxury property overlooking Hong Kong’s Victoria Harbour has been sold for US$938m, higher than what analysts had expected.

InterContinental Hotels Group has sold its luxury flagship Hong Kong property for US$938 million (A$1.26b) but will retain management of the property for a further 37-years which could be extended a further 30 years. intercontinental-hong-kong-2532333614-4x3

The sale to a consortium of investors led by Gaw Capital Partners, a Hong Kong based private equity firm, sent IHG shares surging 3.1% on Friday amid investors hopes of a cash return.

The move is the latest asset sale for IHG, which has sold nearly 200 hotels in the past 12 months returning more than US$10b in cash, prompting rumours of a possible merger with Starwood Hotels & Resorts.

IHG chief executive Richard Solomons said the latest deal “completes the disposals of our major owned assets”, the Telegraph UK reports. piscine-Intercontinent-Hong-Kong

The 503-room five star hotel, opened in the 1980s as a Regent Hotel, occupies a rare waterfront strip overlooking Victoria Harbour and is also home to a number of Michellin starred restaurants in the city, including Alain-Ducasse’s SPOON and Japanese chef Nobu Matsuhisa’s namesake restaurant.

The hotel will undergo refurbishment in 2017 and is slated to take 18 months.

IHG said the group would reap a US$700m pre-tax profit on the sale, and fees from the agreement will initially amount to around US$8m each year, which is expected to increase after the refurbishment is complete.

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