Constellation Barclay Holding US to Acquire 80% of the InterContinental New York Barclay for $240 M
December 20, 2013 6:15am
New JV Plans Property Refurbishment
20 December 2013 - InterContinental Hotels Group PLC (IHG) [LON:IHG, NYSE:IHG (ADRs)] today announces that Constellation Barclay Holding US, LLC, which is an affiliate of Constellation Hotels Holding Limited, has agreed to acquire an 80% interest in a joint venture with IHG to own and refurbish the InterContinental New York Barclay (the “Hotel”). The 80% interest will be acquired for gross cash proceeds of $240m, which values the Hotel at $300m prior to refurbishment. IHG will hold the remaining 20% interest.
IHG has secured a 30 year management contract on the Hotel, commencing in 2014, with two ten year extension rights at IHG’s discretion, giving an expected contract length of 50 years. Constellation Barclay Holding US, LLC and IHG have agreed to invest through the joint venture in a significant refurbishment, repositioning and extension of the Hotel. This is expected to commence in 2014 and will take place over a period of approximately 18 months.
The Hotel was opened in 1926 and the freehold has been wholly owned by IHG since 1998. In 2012 the Hotel generated revenues of $75m and EBIT of $16m.
The transaction is expected to complete in the first quarter of 2014, subject to the satisfaction of certain standard conditions. The proceeds will be used for general corporate purposes.
Richard Solomons, Chief Executive of IHG, commented:
“InterContinental New York Barclay is an iconic hotel in one of the world’s iconic cities. Today’s announcement demonstrates the enduring strength of the InterContinental brand and deepens IHG’s relationship with Constellation Hotels, a highly respected owner. We are delighted to be working in partnership with them to manage and extensively refurbish and reposition the hotel. The result, in what is a prime location in New York, will be a fantastic InterContinental brand presence for IHG in one of the world’s leading hotel markets.”
Tags: intercontinental hotels group,
constellation barclay holding us,
constellation hotels holding limited,
intercontinental new york barclay
IHG manages IHG® Rewards Club, the world's first and largest hotel loyalty programme with over 76 million members worldwide. The programme was relaunched in July 2013, offering enhanced benefits for members including free internet for Elites across all hotels, globally.
IHG franchises, leases, manages or owns over 4,600 hotels and 679,000 guest rooms in nearly 100 countries and territories. With more than 1,000 hotels in its development pipeline, IHG expects to recruit around 90,000 people into additional roles across its estate over the next few years.
InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales.
Visit www.ihg.com for hotel information and reservations and www.ihgrewardsclub.com for more on IHG Rewards Club. For our latest news, visit: www.ihg.com/media, www.twitter.com/ihg, www.facebook.com/ihg or www.youtube.com/ihgplc.
Contact: Investor Relations (Catherine Dolton; Isabel Green)
+44 (0)1895 512176
Contact: Media Relations (Yasmin Diamond; Zoë Bird)
+44 (0)1895 512008
IHG Signs with Cornerstone Partners Group for Kimpton Taipei Marking Brand First in Taiwan
Aramark Completes Purchase of Avendra for $1,350 Million
HK CTS Hotels and Kew Green Hotels Partner with IHG to Manage Hotels in Mainland China
IHG Celebrates Groundbreaking of New Brand, avid™ hotels, in Oklahoma City
IHG Partners with Ghelambo for 430-Room Dual-Branded Crowne Plaza and Holiday Inn Express Warsaw Hub, an IHG-First in Poland
IHG in Partnership with JEJUair Plan 2018 Opening of 300-Room Holiday Inn Express Hotel in Seoul, South Korea
IHG Partners with SAMHI to Expand Holiday Inn Express Portfolio in India
IHG ANA Hotels Group Japan, a Joint Venture, Enters Agreement to Launch New Hotel Indigo® Hakone Gora in Japan
Al Badr For Investments and Commercial Spaces Company Signs for First Crowne Plaza Hotel in Cairo
IHG Appoints Vivek Bhalla as the New Regional Vice President, South West Asia
Leisure Hotel Holding and IHG Enter Agreement for First Holiday Inn in Cape Town, Africa
Q3 2017 Financial Reports Round Up Part 1: IHG, AccorHotels, LaSalle
IHG Executes Four New Resort Signings in Southeast Asia that Includes Regions First Kimpton and New Market Entry for Hotel Indigo
Owned and Managed by SS Hoteis Eireli-ME, 209-Room Holiday Inn Goiânia Opens in Brazil
IHG Signs Three Management Contracts to Introduce Kimpton Hotels & Restaurants to Asia
IHG® Welcomes Fergus Stewart to the Europe Region as Vice President, Luxury Operations
Kingston Holdings International Limited & IHG Sign Management Agreement for New Holiday Inn and Suites in Dubai Business Bay
IHG Appoints Claire Bennett as Chief Marketing Officer
IHG and Trans Orient Group Debut Holiday Inn Brand in Quatar with Opening of Holiday Inn Doha
IHG Reveals Name of its New Midscale Brand, avid hotels, with First Property Expected to Open in 2019
Please login or register to post a comment.