IHG has agreed to sell its landmark Intercontinental Park Lane property in London for £301.5 million.
The hotel company has sold the Mayfair hotel to Middle Eastern investment group Constellation Hotels. IHG will continue to manage the property under a 30-year contract with options for IHG to extend this arrangement for a further 30 years.
IHG announced in November that it was looking to sell the 447-room Park Lane property which was opened in 1975 as a purpose-built Intercontinental property and has been fully owned by IHG since 1999.
IHG’s chief executive Richard Solomons said: "The transaction we have announced today to sell Intercontinental London Park Lane highlights the value of our asset portfolio and the attractiveness of Intercontinental as one of the world's leading luxury hotel brands.
“It is another step in our long standing commitment to reduce the capital intensity of IHG. We are very pleased to be working closely with Constellation Hotels, a respected hotel investor, who will be a great partner and with whom we look forward to building a long-term relationship.”
IHG is selling the leasehold of the property to Constellation and the money will be used for “general corporate purposes, with £61 million used to provide security over UK pension liabilities”.
The hotel firm has sold 191 of its hotels over the last 10 years which has brought in proceeds of $6.1 billion.
IHG opened its second Intercontinental property in London last year with the debut of the new Intercontinental Westminster.