InterContinental Hotels Group has sold its one-third percent interest in the Crowne Plaza, London - The City to Grupo Statuto, a leading Italian real estate investor. The hotel has been sold for gross proceeds of £81m. IHG's net proceeds after debt repayments are £18m, £11m in excess of net book value.
The Crowne Plaza London - The City (203 rooms) has been sold with a 17 year Crowne Plaza management agreement, with a 5 year renewal option.
Further transaction details
1. The management agreement signed in respect of the Crowne Plaza London - The City will generate ongoing fees for IHG expected to be in excess of £0.7 million per annum.
2. IHG accounted for Crowne Plaza London - The City as an investment under IFRS, so its earnings were not consolidated.
Since Separation in April 2003, including today's announcement, IHG has announced the disposal of 176 hotels with proceeds of approximately £3.0 billion. A list of IHG's owned and leased properties detailing those disposed of, on the market and not on the market is available at ihgplc.com/investors.
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