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

IHG sells off 10 properties

05 September 2005 by

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.

Buy this week's Caterer magazine for more industry news and analysis.

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.

close

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