InterContinental said to seek S$1.29 billion in Hong Kong hotel sale

InterContinental Hotels Group, owner of the Holiday Inn and Crowne Plaza brands, is seeking at least US$1 billion (S$1.29 billion) from the sale of a Hong Kong hotel, the Bloomberg news agency reported unidentified sources as saying.

The UK company hired Jones Lang LaSalle to find a buyer for the InterContinental Hong Kong Hotel, the people said. It aims to complete the sale by March.

InterContinental has been reducing its property holdings over the last decade to focus on operating hotels rather than owning them. The Hong Kong hotel’s revenue per available room, an industry measure of occupancy and rates, rose 5.4 per cent in the third quarter on increased business from tour groups and corporate events, Chief Financial Officer Paul Edgecliffe-Johnson said on an Oct 21 earnings call.

The five-star property, located along the harbour front in the city’s Tsim Sha Tsui shopping district, has 503 rooms and Hong Kong’s largest presidential suite at 7,000 square feet, according to its website. It is home to Spoon by Alain Ducasse, a French eatery that has won two Michelin stars, and an outpost of Japanese chef Nobu Matsuhisa’s namesake restaurant.

Source : Today – 19 Nov 2014

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