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

Intercon restructures management agreement with Felcor

26 January 2006

Property company FelCor Lodging Trust (FLT) may sell or convert fifteen InterContinental Hotel Group (IHG) properties after renegotiating its management agreement with the British operator.

FLT owns 15,790 rooms which are managed by IHG.

Under the new contract FLT could now sell or convert 15 hotels (4,954 rooms), which may not retain the IHG flag, while a further nine hotels will also be sold by FLT retaining the IHG brand.

The new agreement also extends the contract terms of the remaining 17 hotels to 2025 with rebased incentive fee payments.

Eleven of these will also receive additional capital investment totalling $50m (£28m).

Under the restructuring, Hospitality Properties Trust (HPT) bought seven hotels from FLT for $160m (£89.6m) and will retain the IGH flag on these assets.


Andrew Cosslett, IHG's chief executive said: "Agreeing this deal with FelCor is a big step forward. It improves the quality of our brand distribution and lays out clearly performance criteria for both parties. We are also very happy to deepen our long-standing relationship with HPT."

By Emily Manson

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku Join the craze and play Sudoku online!
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