Checking out: Le Grand group to sell landmark Paris hotel
World’s largest hotelier says it has received a binding offer for historic InterContinental Paris
Le Grande Hotel
Le Grande Hotel InterContinental Hotels Group is set to sell its flagship Le Grand hotel in Paris to Qatari-backed investor Constellation Hotels for €330 million, it said yesterday, raising the prospect of more cash returns for investors.
The world’s largest hotelier said it had received a binding offer for the historic InterContinental Paris, where notable visitors of the past included Russia’s lastTsar Nicholas II and Britain’s British king Edward VII .
The deal that will see IHG manage the hotel for up to 60 years.
The sale, which is not expected to be completed until next year, continues IHG’s strategy of selling on its hotels and then managing them under contract.
The approach has seen the group return some $10 billion to shareholders since 2003, including a $750 million special dividend in May.
Analysts have said the sale of the Paris hotel as well as its InterContinental in Hong Kong could help bring another $1.5 billion of cash returns to shareholders over the next three years.
The price tag for Paris, which had a net book value of $342 million, was slightly low, however, according to Numis.