Hotel Online  Special Report

 InterContinental Hotels Group PLC Sells 16 Staybridge
Suites' Hotels to Hospitality Properties Trust
for $185 million Cash
July 2, 2003 - InterContinental Hotels Group PLC (IHG) today announces it has sold 16 Staybridge Suites' hotels in the United States to Hospitality Properties Trust (HPT) for $185 million in cash. As part of the transaction these hotels continue to operate within the Staybridge Suites' brand, IHG having entered into a management agreement on these hotels with HPT for a period of 20 years with options to extend. The amount paid by HPT is over $15 million more than the book value of the assets and the sale will not have a material effect on earnings in the year to December 2003.
Commenting on the transaction Richard North, Chief Executive, InterContinental Hotels Group said: "We have successfully developed and grown the Staybridge Suites' brand over the last five years and it now has critical mass in the upscale extended  stay segment. As a consequence, we no longer need to own these assets. The deal is consistent with our strategy to prove brand concepts and then reduce capital intensity whilst converting the income stream into management or franchise fees. HPT is one of the strongest and most  respected real estate investment trusts in the market and we are delighted to be working in partnership with them"
Richard Solomons, Finance Director, InterContinental Hotels Group said: "The Staybridge Suites' brand is making good progress with 55 hotels open and over 40 in the pipeline. This transaction is a direct consequence of  the continuing review of our asset base and represents a step along the path to improving the group's return on capital." 


Michaela Scarbrough

Also See: STAYBRIDGE SUITES® by Holiday Inn has Six Hotels Open with 71 in the Development Pipeline / Nov 1999

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