InterContinental Hotels Group (IHG) has agreed to sell its ownership interest in InterContinental Hong Kong for $938 million, which is one of the biggest hotel deals in terms of transaction value in Hong Kong’s history. IHG is selling its only wholly owned asset in the China market to Supreme Key, a consortium of investors advised and managed by Gaw Capital Partners. Supreme Key has agreed to invest in a significant refurbishment of the hotel, which is expected to start in 2017 and will happen over a period of approximately 18 months.
IHG will retain a 37-year management contract on the hotel, with three 10-year extension rights, giving an expected contract length of 67 years. Opened in 1980, the hotel is internationally-acclaimed as one of the world’s most famous hotels. It has 503 guest rooms, including 87 suites, a five-star rating from the Forbes Travel Guide and three Michelin-starred restaurants. It has been wholly owned by IHG and operated under the InterContinental brand since 2001.