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Jones Lang LaSalle Hotels & Hospitality Group is pleased to announce the sale of IHG’s interest in the InterContinental London Park Lane.
London, 27th March 2013 – On behalf of InterContinental Hotels Group (IHG), Jones Lang LaSalle Hotels & Hospitality Group, as sole exclusive agents, is pleased to announce the sale of IHG’s interest in the InterContinental London Park Lane. The short leasehold interest (approximately 57 years remaining) was acquired by a private Middle Eastern investor for a sum of £301,500,000.
In a continuation of their long-planned "asset light" strategy, IHG strategically timed the sale of their London flagship hotel to take advantage of strong demand for prime central London assets, while acknowledging the shortening term of the lease with The Crown Estate.
The InterContinental London Park Lane benefits from a rich history, together with a long association with royalty and international dignitaries and celebrities. Initially opened in 1975, an extensive £83.0 million refurbishment of the hotel was conducted by IHG in 2005/2007, reaffirming its position as one of London’s premier trophy hotels.
Operated by IHG, under their prestigious InterContinental brand, the 447 room hotel was sold subject to a long term management agreement with InterContinental Hotels & Resorts.
George Nicholas, Executive Vice President, Northern European Transactions, Jones Lang LaSalle Hotels and Hospitality Group said “The sale represented an extremely rare investment opportunity with only a handful of trophy Mayfair hotels changing hands during the last decade. We were dealing with numerous qualified investors from all over the world, however, we selected this private investor because they share the same meticulous vision for the asset and passion for the brand”.
“Comprising the largest single asset hotel transaction in EMEA so far in 2013, the sale is record breaking in a number of ways including being the largest ever sale and manageback of a single asset in the London hotel market and the only ever sale & manageback transaction to have occurred on world famous Park Lane”.
George Nicholas added “We are delighted with this successful outcome, which highlights the continued breadth and depth of investor interest for prime London hotels. This is truly a record breaking transaction”.
Mark Wynne Smith, Global CEO of Jones Lang LaSalle Hotels & Hospitality Group commented “We are delighted to have swiftly and successfully completed this transaction on behalf of IHG. In new hands, the hotel will remain first choice among international travellers to London."
He continues "In addition to achieving a premium price for one of London’s finest trophy hotels, IHG has secured a new 60 year management contract, which will ensure that their InterContinental brand remains a permanent fixture at No.1 Park Lane for decades to come”.
The sale represents Jones Lang LaSalle Hotels & Hospitality Group’s fourth major UK hotel transaction in 2013, bringing the tally of hotels sold by JLL to over £976m so far this year.
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