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IHG has agreed a deal to sell the Intercontinental Hong Kong hotel for $938 million.
The group will sell the “iconic” five star property to Supreme Key, a consortium of investors advised by Gaw Capital Partners, a Hong Kong private equity property firm.
IHG will retain a 37-year management contract on the hotel, with three 10-year extension rights, giving an expected length of 67 years. The deal is similar to the one IHG agreed when selling off Le Grand Hotel in Paris and Intercontinental Park Lane in London.
IHG will receive $8 million a year in management fees, a sum that will increase following a refurbishment the new owner has agreed to undertake in 2017.
The hotel is situated on the Kowloon waterfront, opening in 1980 and has 503 guest rooms including 87 suites and has been wholly owned by IHG and operated under the InterContinental brand since 2001.
IHG CEO Richard Solomons, said: "The InterContinental Hong Kong is an exceptional property and an iconic hotel in our portfolio.
“This sale highlights the enduring appeal of InterContinental as one of the world's leading luxury hotel brands. We are very pleased to be working closely with a highly regarded hotel investor that will be a great partner for IHG and with whom we look forward to building a successful long term relationship.”