Intercontinental Hotels sells New York Barclay for 240m dollars

19th Dec 2013 15:39

InterContinental Hotels (IHG) is selling most of its stake in the InterContinental New York Barclay for 240m dollars.IHG, which also has the Holiday Inn and Crowne Plaza chains, is selling 80% of the hotel to Constellation Hotels in a joint venture, with IHG keeping the rest.The pair have agreed to invest through the joint venture in a major 18-month refit and extension of the hotel due to start in 2014.IHG has secured a 30-year management contract on the hotel starting in 2014, with two 10-year extension rights at its discretion, giving an expected contract length of 50 years.The hotel was opened in 1926 and IHG has wholly owned the freehold since 1998.PW