IHG announces sale of InterContinental Montreal
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IHG announces sale of InterContinental Montreal
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Category: North America & West Indies / Carribean islands -
This is a press release selected by our editorial committee and published online for free on 2007-07-13
InterContinental Hotels Group PLC ("IHG") announces the sale of the 357 room InterContinental Montreal, Canada to Sweden-based Pandox AB ("Pandox") for CAN$49 million (US$46 million) in cash. IHG will continue to manage the hotel under a 30 year management contract, including contract renewals.
Pandox is purchasing the hotel from IHG, which owns 74.11 percent, and Cadim, a division of the Caisse de depot et placement du Quebec. which owns 25.89 percent. Pandox will invest a further CAN$11 million (US$10 million) to renovate the hotel. Pandox also owns the Crowne Plaza Brussels City Centre, Crowne Plaza Antwerp and Holiday Inn Brussels Airport.
The hotel generated revenues of US$22.5m, EBITDA of US$3.6m and EBIT of US$2.8m in 2006, and had a net book value of US$30.2m at 31 March 2007.
The sale is a continuation of IHG's strategy of growing its management and franchise businesses and reducing asset ownership. Since 2003, IHG has disposed of 178 hotels globally with a net asset value of over £2.9bn, with proceeds in excess of net book value.
"We had previously announced that the InterContinental Montreal was on the market as part of our ongoing strategy to reduce our asset intensity. Our objective is only to own real estate where it drives the growth of our brands," said Andy Cosslett, Chief Executive of IHG.
"The InterContinental Montreal is a great property with tremendous potential to be a top of mind, leading business and meetings hotel in the city centre, said Anders Nissen, CEO, Pandox AB. "This is our fourth IHG branded hotel and we are excited about expanding our portfolio into North America."
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