IHG Sells the 383-room InterContinental Mark Hopkins San Francisco for $120 Million
February 18, 2014 7:06am
The Hotel first opened in 1926, and became an InterContinental in 1973. IHG acquired the lessee interest in 1983 and subsequently acquired the freehold in 2010. The new owners have agreed to invest approximately $20m to refurbish and reposition the hotel.
The sale is a continuation of IHG’s strategy to reduce the capital intensity of the business. Over the last 12 months IHG has agreed to dispose of three owned InterContinental hotels, with total gross proceeds of almost $830m. The disposal of InterContinental London Park Lane completed in May 2013 and the disposal of an 80% interest in InterContinental New York Barclay was announced in December 2013; this is expected to complete next month.
Paul Edgecliffe-Johnson, Chief Financial Officer of IHG commented:
“Today’s announcement is yet another milestone for IHG, as we continue our asset light strategy. This demonstrates our ability to execute major asset deals and the enduring attractiveness of the InterContinental brand. We are delighted to have secured a long-term management contract on the Hotel with an experienced new owner and look forward to a successful partnership with them.”
**The Hotel generated revenues of $42m and EBIT of $6m in 2013 and had a net book value of $90m at 31 December 2013.
Tags: intercontinental mark hopkins san francisco,
woodridge capital partners,
oaktree capital management
IHG manages IHG® Rewards Club, the world’s first and largest hotel loyalty programme with over 77 million members worldwide. The programme was relaunched in July 2013, offering enhanced benefits for members including free internet across all hotels, globally.
IHG franchises, leases, manages or owns 4,700 hotels and 687,000 guest rooms in nearly 100 countries and territories. With more than 1,100 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; Zoe Bird)
+44 (0) 1895 512008
Fairmont Hotels & Resorts Signs with Next Century Associates for Revitalization and Management of L.A.'s Historic Century Plaza Hotel
$2.5 Billion Century Plaza Development to Get Underway in March 2016; Expected to Re-Open Early 2018
Fairmont San Francisco Hotel Interests Sold to Mirae Asset Global Investments for $450 Million
Timbers Resorts to Develop and Manage Hokuala, A New Oceanfront Resort On The Island Of Kaua'i
Woodridge Capital Partners Acquires San Francisco’s 393-room Stanford Court Hotel
Northview Hotel Group & Affiliate of Oaktree Capital Management Acquire the Bethesda Marriott in MD
Please login or register to post a comment.