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IHG receives binding offer for InterContinental Paris Le Grand from Constellation

Dubai-based Constellation Hotels Holding Limited proposed a purchase price of €330 million, payable in cash at completion.

InterContinental Hotels Group announced that it has received a binding offer from Constellation Hotels Holding Limited to acquire InterContinental Paris Le Grand. The proposed purchase price is €330 million ($442 million), payable in cash at completion. Constellation has made a further commitment to invest over time an estimated €60 million in future hotel renovations.Following receipt of the offer, IHG has agreed to a period of exclusivity with Constellation

The terms of the offer are such that IHG would retain a 30 year management contract on the Hotel, with three 10 year extension rights at IHG's discretion, giving an expected contract length of 60 years. Management fees are expected to be approximately €4m ($5m) per annum.

The Hotel, which is located in the heart of Paris overlooking the Opera House, has 470 guest rooms, including 70 suites. It first opened in 1862 and has operated under the InterContinental brand since 1982. Richard Solomons, Chief Executive Officer of IHG commented: "The InterContinental Paris - Le Grand is an exceptional property and is an iconic hotel in our portfolio. This announcement demonstrates the continued successful implementation of our asset-light strategy and the strength of our relationship with Constellation, following its recent purchase of InterContinental London Park Lane and its majority investment in InterContinental New York Barclay. This potential transaction is yet another example of the enduring appeal of InterContinental as one of the world's leading luxury hotel brands."

InterContinental Paris Le Grand could join the list of 5-star hotels belonging to foreign owners. According to MKG Hospitality, 63% of rooms in 5* and "palaces" hotels in Paris (which are 5,530 as of June 16th) are owned by international investors (Explore our exclusive interactive map of 5-star and palaces hotel owners in Paris).

Also read:

  • Qatari investor buys The St Regis, Rome

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