InterContinental Hopes to Raise $1 Billion From Sale of Iconic Hong Kong Hotel
InterContinental Hotels Group Plc, owner of the Holiday Inn and Crowne Plaza brands, is seeking at least $1 billion from the sale of a Hong Kong hotel, people with knowledge of the matter said.
The Denham, England-based company hired Jones Lang LaSalle Inc. to find a buyer for the InterContinental Hong Kong Hotel, the people said. It aims to complete the sale by March, according to one of the people, who asked not to be identified as the details are private.
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 percent 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 harborfront 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.