InterContinental Hotels Group today announces it has agreed to sell the
InterContinental Hotel Paris to DABICAM SAS, a wholly owned affiliate of GIC Real
Estate Pte Ltd, the real estate investment arm of the Government of
Singapore Investment Corporation, for a price (before transaction costs) of €315
million in cash (approximately £214 million), €65 million (approximately £44
million) in excess of net book value). The transaction is expected to complete in
the fourth quarter of 2005, at which point the hotel (438 rooms) will exit the IHG
system.The transaction may be subject to shareholder approval, if required.
IHG will continue to own its flagship InterContinental in Paris, the 477 room
InterContinental Le Grand, which has been recently refurbished.
Andrew Cosslett, Chief Executive of InterContinental Hotels Group, commented:
“In line with our strategy, this sale further reduces the capital IHG has invested
in real estate and with the presence of the flagship InterContinental Le Grand Paris
the Group retains excellent distribution in this key city.”