InterContinental Hotels Group has agreed to sell IHG’s ownership interest in InterContinental Hong Kong to Supreme Key Limited, a consortium of investors advised and managed by Gaw Capital Partners, for a gross purchase price of $938 million. Supreme Key Limited has made a commitment to invest in a significant refurbishment of the hotel. This is expected to commence in 2017 and will take place over a period of approximately 18 months. IHG will retain a 37-year management contract on the hotel, with three 10-year extension rights. Management fees payable to IHG are initially expected to be approximately $8 million per annum, increasing following the refurbishment. The hotel, which is situated on the Kowloon waterfront, opened in 1980 and has 503 guestrooms, including 87 suites. It has been wholly owned by IHG and operated under the InterContinental brand since 2001. The transaction is scheduled to complete in the second half of 2015.
