The Caterer

IHG sells off 10 properties

05 September 2005 by
IHG sells off 10 properties

InterContinental Hotel Group (IHG) has sold 10 hotels in Australasia and the South Pacific for a combined A$405m (£170m).

Nine hotels in Australia and New Zealand - including six Holiday Inns, three Crowne Plazas and an InterContinental - have gone to Eureka Fund Management for A$390m (£164m). The price was above the net book value of £133m.

The 10th hotel, the Holiday Inn Suva in Fiji, has been bought by FNPF Investment, a subsidiary of the Fiji National Provident Fund, for A$15m (£6m), £1m above book value.

The sale of the hotels, which have 2,310 bedrooms in total, will complete in the last quarter of the year.

IHG will continue to manage them under 10-year contracts (with the option of 10-year extensions). It anticipates management fees of US$4m (£2.2m) in the first year.

"The team in Australia have secured a deal which has resulted in transaction terms beyond our initial expectations and attractive long-term contracts," said IHG chief executive Andrew Cosslett.

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