Menu

IHG sells InterContinental Paris – Le Grand for €330 million

  • Published by Ozgur Tore

InterContinental Hotels Group PLC (IHG) has received a binding offer from Constellation Hotels Holding Limited to acquire InterContinental Paris – Le Grand.

InterContinental-ParisThe proposed purchase price is €330 million ($442 million), payable in cash at completion. Constellation has made a further commitment to invest over time an estimated €60 million in future hotel renovations.

The terms of the offer are such that IHG would retain a 30 year management contract on the Hotel, with three 10 year extension rights at IHG’s discretion, giving an expected contract length of 60 years. Management fees are expected to be approximately €4m ($5m) per annum.

The Hotel, which is located in the heart of Paris overlooking the Opera House, has 470 guest rooms, including 70 suites. It first opened in 1862 and has operated under the InterContinental brand since 1982. In 2013, the Hotel generated revenues of $118m and EBIT of $22m, and as at 30 June 2014, had a net book value of $342m. Cash taxes payable on the potential transaction are not expected to exceed $5m.

Following receipt of the offer, IHG has agreed to a period of exclusivity with Constellation, and, in line with applicable French legal requirements, IHG will enter into an information and consultation period with the relevant employees’ representatives.

Advertisement

Most Read in this category since 01.01.2017

Prev Next

Destinations

Spend a Romantic Weekend in Tallinn, Estonia

Spend a Romantic Weekend in Tallinn, Estonia

Beginning of December 2016, me and my wife visited Tallinn, the capital of Estonia, and if you are searching for a romantic weekend, then you should consider Tallinn. The Estonian capital offers tra...

Best of Greek Islands with Celestyal Cruises

Best of Greek Islands with Celestyal Cruises

In Summer 2016, I had chance to sail to Greek Islands with the Celestyal Cruises. In an organization with Karavan Cruises, travelers enjoyed best of Greek islands with Celestyal and received a compl...

Unique and Luxurious Vacation Destination in Turkey: Cappadocia

Unique and Luxurious Vacation Destination in Turkey: Cappadocia

ftnNEWS would like to present you a unique vacation idea here in Turkey: Cappadocia Region. Located on the central Anatolia plateau within a volcanic landscape sculpted by erosion to form a successi...