Intercontinental Hong Kong Sold
The Intercontinental Hong Kong is an iconic hotel and rightly so. It sits right on the waterfront of Kowloon looking back at the amazing Hong Kong skyline. I visited the hotel last year and was impressed by the views, the staff and of course my room.
Today Intercontinental Hotels Group announced that they have sold their interest in the hotel to a consortium of investors for $938 million. As part of the sale, IHG will retain a 37 year management contract for the hotel with three more 10 year extensions after that.
According to the company’s press release, the Intercontinental Hong Kong was built in 1980 and features 503 rooms, a five star rating and three Michelin starred restaurants. In 2001 IHG purchased the property and has been operating it as an Intercontinental ever since.
This sale is in line with IHG’s efforts to offload their portfolio of properties. When talking about this sale Richard Solomon IHG’s CEO said, “This transaction completes the disposals of our major owned assets. Since our formation in 2003 we have disposed of almost 200 hotels for gross proceeds of almost $8 billion, and have returned over $10 billion to our shareholders.”
While the Intercontinental Hong Kong is definitely a world class hotel, its decor does feel a little dated. Still very classy, but definitely not modern. Thankfully as part of the purchase, the new owners have agreed to a significant refurbishment of the hotel. The refurbishment is set to begin in 2017 and should take 18 months. It will no doubt take an amazing hotel and make it even better.
I stayed at the Intercontinental Hong Kong immediately after staying at the Hyatt Regency Tsim Sha Tsui. While I fully expected the IC to beat out the Hyatt, it really was in a completely different league. Everything from the staff to the decor was far superior to the Hyatt. I really loved this hotel and waking up to see the Hong Kong skyline from my window was a magical experience.
The sale is scheduled to close sometime in the second half of 2015. I am glad to see that this iconic property is going to remain an Intercontinental while at the same time getting a refurbishment. It truly is one of the best located hotels in the world and seems like it will continue to improve in order to stay competitive going forward.