IHG Announces Sale Of InterContinental Mark Hopkins San Francisco For $120 Million
InterContinental Hotels Group PLC (IHG) [LON:IHG, NYSE:IHG (ADRs)] today announces the sale of the 383 room InterContinental San Francisco Mark Hopkins1 (the "Hotel") to a joint venture between affiliates of Woodridge Capital Partners ("Woodridge") and funds managed by Oaktree Capital Management L.P. ("Oaktree") for $120m gross cash proceeds. IHG will continue to manage the Hotel under a long-term management contract.
the lessee interest in 1983 and subsequently acquired the freehold in 2010. The new owners have agreed to invest approximately $20m to refurbish and reposition the hotel.
The sale is a continuation of IHG's strategy to reduce the capital intensity of thebusiness. Over the last 12 months IHG has agreed to dispose of three owned InterContinental hotels, with total gross proceeds of almost $830m. The disposal of InterContinental London Park Lane completed in May 2013 and the disposal of an 80% interest in InterContinental New York Barclay was announced in December 2013; this is expected to complete next month.
Paul Edgecliffe-Johnson, Chief Financial Officer of IHG commented:
1The Hotel generated revenues of $42m and EBIT of $6m in 2013 and had a net bookvalue of $90m at 31 December 2013.
IHG franchises, leases, manages or owns more than 4,900 hotels and 724,000 guest rooms in nearly 100 countries, with almost 1,300 hotels in its development pipeline. IHG also manages IHG® Rewards Club, the world"s first and largest hotel loyalty programme with more than 88 million members worldwide.
InterContinental Hotels Group PLC is the Group"s holding company and is incorporated in Great Britain and registered in England and Wales. More than 350,000 people work across IHG"s hotels and corporate offices globally.
Visit www.ihg.com for hotel information and reservations and www.ihgrewardsclub.com for more on IHG Rewards Club. For our latest news, visit www.ihg.com/media and follow us on social media at: www.twitter.com/ihg, www.facebook.com/ihg or www.youtube.com/ihgplc.