InterContinental completes disposal of seven hotels in Europe

12 September 2006
InterContinental completes disposal of seven hotels in Europe

InterContinental Hotels Group (IHG) has completed its disposal of seven hotels in Continental Europe for €634m (£440m) cash.

The properties are located in Austria, France, Germany, Hungary, Italy, Netherlands and Spain.

IHG put them on the market in January this year and sold them to Morgan Stanley Real Estate Funds (MSREF) in July at approximately €80m (£54m) above the net book value of €550m (£373m).

IHG retains 30-year management contracts on the hotels, with two 10-year renewals at IHG's discretion giving a total potential contract length of 50 years.

It has now sold 175 hotels with a net asset value of more than £2.8b since separation from Six Continents in April 2003.

The move is in line with the hotel operator's strategy to grow its managed and franchised business, reduce asset ownership and reach its growth target of adding 50,000 to 60,000 rooms on a net organic basis by 2008.

IHG and MSREF also plan to convert further hotels to IHG's brands.

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By Emily Manson

E-mail your comments to Emily Manson]( completes disposal of seven European hotels) here.

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