IHG agrees to sell InterContinental Hong Kong for $938M

LONDON – InterContinental Hotels Group said on Friday it had agreed to sell InterContinental Hong Kong to a consortium of investors for $938 million but will retain a management contract.

 

The buyer is Supreme Key Limited, a consortium of investors advised and managed by Gaw Capital Partners.

 

Supreme has paid a cash deposit to IHG of $94 million, with the remaining proceeds payable in cash on completion, expected in the second half of 2015.

 

IHG said it will retain a 37-year management contract on the hotel, with three 10-year extension rights, giving an expected contract length of 67 years.

 

Management fees payable to IHG are initially expected to be approximately $8 million per annum, increasing following a refurbishment Supreme has agreed to start in 2017. – Reuters