InterContinental Hotels Group has announced the sale of the 357 room
InterContinental Montreal, Canada to Sweden-based Pandox AB for CAN$49
million (US$46 million) in cash.IHG will continue to manage the hotel under a 30
year management contract, including contract renewals.
Pandox is purchasing the hotel from IHG, which owns 74.11 percent, and Cadim, a
division of the Caisse de depot et placement du Quebec. which owns 25.89 percent.
Pandox will invest a further CAN$11 million (US$10 million) to renovate the hotel.
Pandox also owns the Crowne Plaza Brussels City Centre, Crowne Plaza Antwerp and
Holiday Inn Brussels Airport.
The hotel generated revenues of US$22.5m, EBITDA of US$3.6m and EBIT of US$2.8m in
2006, and had a net book value of US$30.2m at 31 March 2007.
The sale is a continuation of IHG’s strategy of growing its management and franchise
businesses and reducing asset ownership. Since 2003, IHG has disposed of 178 hotels
globally with a net asset value of over £2.9bn, with proceeds in excess of net book
“We had previously announced that the InterContinental Montreal was on the market as
part of our ongoing strategy to reduce our asset intensity. Our objective is only to
own real estate where it drives the growth of our brands,” said Andy Cosslett, Chief
Executive of IHG.
“The InterContinental Montreal is a great property with tremendous potential to be a
top of mind, leading business and meetings hotel in the city centre, said Anders
Nissen, CEO, Pandox AB. “This is our fourth IHG branded hotel and we are excited
about expanding our portfolio into North America.”