Qatar adds luxury London hotel to its property portfolio
LONDON - InterContinental Hotels Group announced Thursday they have agreed to sell their London Park Lane hotel to Qatari investors, adding to the Gulf state's growing portfolio of blue-chip property in Britain.
IHG said in a statement they had sold the 447-room property to Constellation Hotel UK, an affiliate of Constellation Hotels Holding, " a Middle Eastern private investment group" for £301.5 million ($457.5 million, 356.5 million euros).
Constellation is a Luxembourg-based holding company with links to Qatar.
Park Lane is an exclusive street featuring many top hotels overlooking Hyde Park.
Qatar already had a strong presence in London, having 95-percent financed The Shard, western Europe's tallest skyscraper, and it also owns the luxury department store Harrods.
IHG will continue to manage the hotel for 30 years, with three 10-year extensions at their discretion, giving an expected 60-year contract length.
The hotel was opened in 1975 and has been wholly owned by IHG since 1999. It generated revenues of $89 million in 2012.
The transaction is expected to be completed in the second quarter of this year.
Since 2003, IHG has sold 191 hotels for proceeds of $6.1 billion.
"It is another step in our long-standing commitment to reduce the capital intensity of IHG," said chief executive Richard Solomons.