IHG sells off flagship Hong Kong hotel

Sunday, 12 Jul, 2015 0

Intercontinental Hotels Group has announced the sale of its Hong Kong flagship hotel in a deal worth $938 million.

The new owner of the InterContinental Hong Kong is investment consortium Supreme Key, but IHG will continue to run the Hong Kong hotel.

Under the deal, IHG retains the management contract for a minimum of 37 years, with the option to extend this up to 67 years.

Supreme Key said it will begin a renovation of the 503-room hotel in 2017.

This is another example of IHG’s ‘asset light’ strategy – selling off prime real estate to free up funds for further expansion and for shareholder returns.

Since 2003 the group has sold off nearly 200 hotels including InterContinental Paris – Le Grand and InterContinental London Park Lane.

"Looking forward, we will continue to focus on the disciplined execution of our winning strategy for sustainable high quality growth," said IHG CEO Richard Solomons.

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.