IHG sells InterContinental Hong Kong for US$938 million.

InterContinental Hotels Group agrees to sell IHG?s ownership interest in InterContinental Hong Kong to Supreme Key Limited, a consortium of investors advised and managed by Gaw Capital Partners, for a gross purchase price of US$938 million.
The buyer has paid a cash deposit to IHG of US$94 million, with the remaining proceeds payable in cash on completion. The buyer has made a further commitment to invest in a significant refurbishment of the hotel. This is expected to commence in 2017 and will take place 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. Management fees payable to IHG are initially expected to be approximately US$8 million per annum, increasing following the refurbishment.