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 ten-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. It has 503 guest rooms, including 87 suites, and has been wholly owned by IHG and operated under the Intercontinental brand since 2001.
IHG chief executive 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."
Last week, IHG named the new top tier membership level for its IHG Rewards Club loyalty scheme - Spire Elite (see news, July 10).
Tom Newcombe
