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Intercontinental Hotels Group (IHG) has sold the iconic Paris Le Grand hotel in a deal worth around €330 million.
The 470-room property which overlooks the Paris Opera House has been sold to Constellation Hotels and the transaction is expected to be completed early next year.
IHG said in a statement: “The acceptance of the offer follows the conclusion of the information and consultation period with the relevant hotel employees' representatives, and the execution of definitive legal documentation.”
IHG confirmed in August that it had received a “binding offer” from Constellation, which has made a commitment to invest around €60 million in future hotel renovations.
The move is part of IHG’s plans to sell off some of its hotels in order to free up capital.
IHG will retain a 30-year management contract on the hotel, with three 10-year extension rights “at IHG’s discretion”, giving an expected contract length of 60 years. Management fees are expected to be approximately €4 million a year.
Earlier this year, IHG confirmed it will terminate its contract at the Intercontinental London Westminster, which will now become a Hilton Conrad.