In­tercon­ti­nen­tal sells Park Lane Ho­tel

The Pak Banker - - 6BUSI­NESS -

LON­DON: In­terCon­ti­nen­tal Ho­tels Group Plc (IHG) agreed to sell its Lon­don Park Lane Ho­tel to Mid­dle Eastern in­vestors for 301.5 mil­lion pounds ($457 mil­lion) as it sharp­ens its fo­cus on man­ag­ing prop­er­ties and brands.

In­terCon­ti­nen­tal, the world’s largest ho­tel-room provider, will run the 447-bed­room ho­tel un­der a 30-year con­tract and can ex­tend that another 30 years, the Denham, Eng­land-based com­pany said in a state­ment to­day. The ho­tel was bought by an af­fil­i­ate of closely held Con­stel­la­tion Ho­tels Hold­ing Ltd. for 62 per­cent more than book value at the end of De­cem­ber, the state­ment said. The deal “high­lights the value of our as­set port­fo­lio and the at­trac­tive­ness of In­terCon­ti­nen­tal as one of the world’s lead­ing lux­ury ho­tel brands,” Chief Ex­ec­u­tive Of­fi­cer Richard Solomons said in the state­ment. “It is another step in our long stand­ing com­mit­ment to re­duce the cap­i­tal in­ten­sity of IHG.”

Lon­don’s lux­ury-ho­tel mar­ket has been de­fy­ing Europe’s sov­er­eign-debt cri­sis and Bri­tain’s strug­gle for eco­nomic growth as over­seas vis­i­tors drive record sales and oc­cu­pancy rates, boost­ing val­ues. The ho­tel gen­er­ated $89 mil­lion in rev­enue last year and In­terCon­ti­nen­tal said it ex­pects fees of about 4 mil­lion pounds a year from the man­age­ment agree­ment.

The Lon­don Park Lane, which over­looks Hyde Park and is about a 10-minute walk from Buck­ing­ham Palace, opened in 1975. It was once the site of a royal res­i­dence and in­cludes a fullser­vice spa, ac­cord­ing to the ho­tel’s web site. In­terCon­ti­nen­tal, owner of the Hol­i­day Inn and Crowne Plaza brands, said it will have sold 191 ho­tels for $6.1 bil­lion since be­com­ing an in­de­pen­dent com­pany in 2003. The Park Lane deal will give the com­pany an ex­cep­tional pre­tax gain of about $150 mil­lion and it will have to pay a one­time tax of about $30 mil­lion.

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