InterContinental Hotels Group has announced the streamlining and renewal of its contract with US-partner Hospitality Properties Trust (HPT).
The new 25 year management contract covers four previous agreements covering 130 hotels. Under the new contract up to 42 hotels (representing 6,751 rooms) will be rebranded or sold by HPT, while the 88 remaining properties will undergo a $300m renovation programme.
Chief executive of IHG, Richard Solomons, said: "We are delighted to announce the continuation of this relationshipThe exit of up to 43 hotels and the $300m investment by HPT in the remaining 88 hotels will leave us with a high quality brand defining portfolio which will be well placed to deliver superior returns to IHG over the long term."
IHG has also agreed to fund a security deposit of $37m to cover any future shortfalls to HPT's owner priority returns. The balance of this will be repaid to IHG at the end of the contract.
The properties include three InterContinental hotels, six Crowne Plaza hotels, two Holiday Inn hotels, 19 Staybridge Suites hotels and 58 Candlewood Suites hotels.
By Emily Manson
E-mail your comments to Caterer News here.
If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk
Looking for a new job? Find your next job here with Caterersearch.com jobs