Intercontinental Hotels Group (IHG) PLC has sold the Intercontinental Hong Kong for US$938 million.
The buyer, Supreme Key Limited, is owned by Pioneer Global Group and separate undisclosed account investors advised by Gaw Capital Partners. The acquisition will be Pioneer Global Group’s first hotel investment in Hong Kong.
As part of the deal, Supreme Key has committed to invest in a significant refurbishment of the property, which opened in 1980 (originally the Regent Hong Kong). Renovations are expected to commence in 2017 for a period of approximately 18 months.
IHG will retain a 37-year management contract on the hotel, with three 10-year extension rights.
The five-star hotel is centrally located at the Kowloon waterfront, with panoramic views of Victoria Harbour and Hong Kong’s skyline. It boasts three Michelin-starred restaurants and a range of state-of-the-art meeting and banquet facilities. The hotel has 503 guest rooms and has been wholly owned by and operated under IHG since 2001.
Richard Solomons, chief executive officer of IHG commented: “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.
“This transaction completes the disposals of our major owned assets. Since 2003 we have disposed of almost 200 hotels for gross proceeds of almost $8 billion, and have returned over $10 billion to our shareholders. Looking forward, we will continue to focus on the disciplined execution of our winning strategy for sustainable high quality growth.”
For more information, visit ihg.com