InterContinental sells seven European properties

13 July 2006
InterContinental sells seven European properties

InterContinental Hotels Group (IHG) has sold seven European hotels to the Morgan Stanley Real Estate Fund (MSREF).

The €634m (£440m) deal, approximately €80m (£55m) above net book value, is expected to be completed in the third quarter of 2006.

IHG has retained 30-year management contracts for the hotels, with the option of two ten year renewals at IHG's discretion. MSREF has agreed to make investments into the properties of around €60m (£41m).

The deal brings the total number of hotels IHG has sold since separating from Six Continents in April 2003 to 175.

Andrew Cosslett, chief executive of IHG said: "This deal is a significant step for IHG as we near the conclusion of our asset disposal programme."

He added: "IHG is fully focused on its growth target of adding 50,000 to 60,000 rooms to our portfolio on a net and organic basis by the end of 2008."

The portfolio of 2,537 rooms was originally put on the market in January this year.

InterContinental Hotels Group appoints new strategy chief >>

InterContinental Group cancels Belgrade hotel agreement >>

By Alix Young

Get your copy of Caterer and Hotelkeeper every week -

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking