InterContinental Hotels Group has completed the sale of its European portfolio to one of its largest franchises for £240m.
IHG said today that 24 hotels had been sold to a subsidiary of Westbridge Hospitality Fund, Westmont Hospitality, with 15-year franchise contracts.
The Crowne Plaza, Holiday Inn and Express by Holiday Inn-branded hotels generated £97m turnover operating profit of £19m in 2005.
IHG expects to generate around £2.7m of franchise fees per annum through the deal.
Andrew Cosslett, chief executive of IHG, said: "This deal is another significant step in the transformation of IHG. As we focus on managing and franchising hotels, it is essential that we continue to develop our relationships with key partners on a global basis."
The deal, which is expected to complete later this year, will be the final piece of IHG's stated plan to dispose of 175 hotels worth more than £2.8b and the return of £2.75b to shareholders.
By Emily Manson
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