InterContinental Hotels Group is to dispose of ten wholly owned properties in Australia, New Zealand and Fiji with an intention of retaining management agreements over them. The planned sale is a continuation of IHG’s strategy of growing its management and franchise businesses and reducing asset ownership. That has so far resulted in disposal of 121 hotels for A$4.30bn (£1.75bn). 106 of the hotels sold have been with management or franchise agreements in place. In addition to the hotels sold to date, IHG continues to actively progress sale of a further 16 hotels previously announced as being for sale (excluding those announced today).
The disposal will not include the Group’s joint venture interests in the region, such as InterContinental and Holiday Inn Burswood, Australia, Crowne Plaza Christchurch, New Zealand and the InterContinental resorts in French Polynesia.
“The best way for us to provide value for shareholders, our hotel owners and business partners is to concentrate on our core competencies of hotel and brand management. Our brands are among the world’s most renowned and trusted hotel brands, and the asset disposal programme will create new opportunities for their growth,” said InterContinental Hotels Group Managing Director Asia Pacific, A. Patrick Imbardelli.
“This is a highly valuable property portfolio generating high returns, which we will only sell upon realisation of full value. The assets included are of strategic importance to our brand portfolio in Asia Pacific. Our preference is to continue their management, and support ongoing growth by addition of management agreements in the region.Ê
“This process will not result in any immediate changes to hotels that are intended for disposal. The hotels will be open for business as usual, and are committed to continuing to deliver the highest levels of service to guests and industry partners,” Mr Imbardelli said.
Following the successful sale of 73 InterContinental Hotels Group properties in the UK, Jones Lang LaSalle Hotels has been appointed, together with Knight Frank Expotel, to market the hotels.
Geordie Clark, Managing Director, Jones Lang LaSalle Hotels said, “This sale represents an outstanding opportunity to secure a portfolio of well located and well maintained hotels operated by the largest hotel group in the world. We expect a broad range of investors to be attracted by the diversification of markets and the security that comes with InterContinental Hotels Group management.”
According to Bill Cross, Knight Frank Expotel, the hotels have a strong track record, achieving average occupancy of 82% and average daily rate of A$134 during 2004. “The significant capital expenditure spent over the past four years means the hotels are well positioned to take advantage of the expected upturn in most hotel markets. This sale represents an outstanding - and arguably the last - opportunity to secure a large portfolio of hotels in this market.”
The properties include:
- InterContinental Wellington, New ZealandÊ
- Crowne Plaza Canberra, AustraliaÊ
- Crowne Plaza Coogee Beach, AustraliaÊ
- Crowne Plaza Terrigal, AustraliaÊ
- Holiday Inn Potts Point, Australia
- Holiday Inn Melbourne, Australia
- Holiday Inn on Flinders Melbourne, Australia
- Holiday Inn Perth, Australia
- Holiday Inn Suva, Fiji
- Holiday Inn Townsville, Australia