The five-star, 507-bedroom InterContinental London Park Lane is to be put up for sale as InterContinental Hotels Group (IHG) continues to offload its property assets.
Plans to sell the property were confirmed as IHG announced that it will be returning $1b (£639m) of capital to shareholders following a good set of half year results to 30 June 2012. This marks an increase in the interim dividend by 31%. Proceeds from the forthcoming sale of the InterContinental New York Barclay for $350m (£224m) have helped boost the payout for shareholders.
IHG's total gross revenue for the period was up 7.3% to $10.3b (£6.6m), with revenue per available room (revpar) rising globally by 7.1%.
In Europe revenue increased 11% to $206m (£132m), with revpar up 1.9%, reflecting the uncertain economic climate across the continent. Twenty-two new hotels opened in Europe, the most in a half year since 2008. Later this year will see the launch of only the second InterContinental property in the UK with the opening of a hotel in Westminster.
Amongst IHG's other brands, Holiday Inn - the official hotel supplier to London 2012 - continues to outperform against forecasts and Crowne Plaza is on target to refresh its portfolio by 2015 with the disposal of 41 substandard hotels worldwide.
IHG currently fully owns 11 of its 4,543 hotels (representing more than 666,000 rooms) worldwide.
By Janet Harmer
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