InterContinental Hotels share price jumps after selling off InterContinental Hong Kong for $938m
Shareholders’ hopes will be raised after InterContinental Hotels Group said it had sold the InterContinental Hong Kong, one of its flagship hotels.
The hotelier announced the sale of the five star hotel to Supreme Key, a consortium of investors, early this morning.
The deal is a continuation of IHG’s sell-off strategy, under which the chain has sold almost 200 hotels since 2003, and is likely to raise shareholders’ hopes for strong returns.
Richard Solomons, chief executive, commented:
Looking forward, we will continue to focus on the disciplined execution of our winning strategy for sustainable high quality growth.
Under the $938m-deal, IHG will continue to run the Hong Kong hotel for at least the next 37 years, and potentially up to 67 years, with Supreme Key due to pay an annual management fee which initially stands at $8m.
The hotelier's share price jumped after the announcement, rising 3.2 per cent on Friday morning to become the FTSE's biggest riser of the day.
