InterContinental Hotels Group PLC has agreed to sell IHG’s ownership interest in InterContinental Hong Kong to Supreme Key Limited, a consortium of investors advised and managed by Gaw Capital Partners, for a gross purchase price of US$938m. The Buyer has made a further commitment to invest in a significant refurbishment of the Hotel. This is expected to commence in 2017 and will take place over a period of approximately 18 months.
IHG 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 $8m per annum, increasing following the refurbishment.
The Hotel is internationally-acclaimed as one of the world’s most famous hotels, with a five-star rating from the Forbes Travel Guide, three Michelin-starred restaurants, and a wide range of state-of-the-art meeting and banqueting facilities. It is situated on the Kowloon waterfront, with unrivalled panoramic views of Victoria Harbour and Hong Kong’s skyline. The Hotel opened in 1980 and has 503 guest rooms, including 87 suites, and has been wholly owned by IHG and operated under the InterContinental brand since 2001.
The transaction is scheduled to complete in the second half of 2015