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.
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