Suites' Hotels to Hospitality Properties Trust
for $185 million Cash
|July 2, 2003 - InterContinental Hotels Group
PLC (IHG) today announces it has sold 16 Staybridge Suites' hotels in the
United States to Hospitality Properties Trust (HPT) for $185 million in
cash. As part of the transaction these hotels continue to operate within
the Staybridge Suites' brand, IHG having entered into a management agreement
on these hotels with HPT for a period of 20 years with options to extend.
The amount paid by HPT is over $15 million more than the book value of
the assets and the sale will not have a material effect on earnings in
the year to December 2003.
Commenting on the transaction Richard North, Chief Executive, InterContinental Hotels Group said: "We have successfully developed and grown the Staybridge Suites' brand over the last five years and it now has critical mass in the upscale extended stay segment. As a consequence, we no longer need to own these assets. The deal is consistent with our strategy to prove brand concepts and then reduce capital intensity whilst converting the income stream into management or franchise fees. HPT is one of the strongest and most respected real estate investment trusts in the market and we are delighted to be working in partnership with them"
Richard Solomons, Finance Director, InterContinental Hotels Group said: "The Staybridge Suites' brand is making good progress with 55 hotels open and over 40 in the pipeline. This transaction is a direct consequence of the continuing review of our asset base and represents a step along the path to improving the group's return on capital."
|Also See:||STAYBRIDGE SUITES® by Holiday Inn has Six Hotels Open with 71 in the Development Pipeline / Nov 1999|