IHG sells InterContinental Hong Kong

10 July 2015 by
IHG sells InterContinental Hong Kong

InterContinental Hotels Group (IHG) has announced plans to sell the InterContinental Hong Kong for $938m (£607.5m).

Supreme Key Limited, a consortium of investors managed by Gaw Capital Partners, has bought the hotel, and made a commitment to refurbish it.

The refurbishment is set to start in 2017, and will take place over 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 will be around $8m (£5m) a year until the hotel is refurbished, at which point the fees are expected to rise.

The hotel has 503 rooms, including 87 suites, and has been wholly owned by IHG and operated under the InterContinental Hotels brand since 2001.

Its sale is part of a strategy by IHG to offload its hotel assets but to continue trading the hotels under management contracts.

In 2013, IHG sold the InterContinental Park Lane to an affiliate of Middle Eastern private investment company Constellation Hotels for £301.5m.

IHG boosts UK revpar by 7.7% >>

IHG to launch airline-style reservations system >>

Looking for a job? See all the current hotel vacancies available with The Caterer Jobs >>

Latest video from The Caterer

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