The sale of the world famous InterContinental Park Lane hotel has been completed today for £301.5m. The leasehold of the property was sold to Constellation Hotel (Opco) UK back in March after Intercontinental Hotel Group (IHG) put the property on the market in February.
IHG will now however continue to manage the hotel, after securing a 30-year management contract on the hotel, with three 10-year extension rights at IHG's discretion, giving an expected contract length of 60 years. Management fees are expected to be approximately £4m per annum.
Constellation Hotel (Opco) UK, is an affiliate of Constellation Hotels Holding Limited, a Middle Eastern private investment group.
The proceeds will be used for general corporate purposes, with £61m used to provide security over UK pension liabilities which were previously secured against the hotel.
Opened in 1975, the Park Lane hotel was built purposely for IHG and has since been wholly owned by the company since 1999. In 2012 alone it generated revenues of £359m, EBITDA of £26m and EBIT of £22m.