InterContinental Hotels Group, better known as IHG, has announced today that they will sell the iconic Kowloon property to Supreme Key Limited for a gross purchase price of US$938 million (AU$1.26 billion).
This figure includes a US$94 million cash deposit, with the remainder due after completion of an 18 month renovation program commencing in 2017. The management contract will remain with IHG. Further detail is available here.
The hotel opened in 1980 and had remained one of the few IHG owned and operated properties in their portfolio following other large divestment programs over the past 18 months. In 2014 alone, IHG sold an 80% interest in the InterContinental New York Barclay and completely divested the InterContinental Mark Hopkins in San Francisco and the InterContinental Paris Le Grand. We track open InterContinental properties on a dedicated page on Miles Down Under.
Given that hotel assets only account for 1% of IHG’s assets (per their last shareholder report), this is not a surprising trend for the group who rely heavily on the recognition of their nine core brands along with the addition last year of the Kimpton Hotels and Restaurants group.
We have previously stayed at the InterContinental Hong Kong and while the location of the property is amazing, the age of the hotels does show and we eagerly look forward to the upcoming renovation program.