The sale of the InterContinental Park Lane hotel in London for £301.5m has been completed, it was announced today.
Owners, IHG, announced the sale of the leasehold for the iconic property to Constellation Hotel (Opco) UK back in March.
However IHG will continue to manage the hotel, having secured a 30-year management contract with three ten-year extension rights at IHG's discretion, giving an expected contract length of 60 years. Management fees are expected to be approximately £4m a year.
Constellation Hotel (Opco) UK, is an affiliate of Constellation Hotels Holding Limited, a Middle Eastern private investment group.
£61m of the sale proceeds will be used to provide security over UK pension liabilities which had previously been secured against the hotel.
This disposal of the Park Lane site means IHG has now sold 191 hotels for proceeds of £4b ($6.1b). The InterContinental Park Lane was one of only 10 hotels still owned by IHG out of 4,600.