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Discussion in 'IHG | Rewards Club/Ambassador' started by uggboy, Dec 9, 2014.
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IHG takes $405M offer from Constellation on Le Grand in Paris
Holy moly that's a lot of money! I wonder if rates will go up even further to recover any costs of the renovation...
Ugh... this is all fine and good, unless all of these properties changing hands decide to pull down the IHG banner.
There are already only a handful of high end IC properties, and if for some reason the IC Le Grand, Park Lane, Barclay (and perhaps IC Hong Kong) leave the fold, that is a huge blow to the chain.
The new owners want to maximize their investment and this will lead to higher overnight rates in the future, at least as long there's demand. Of course a renovation would make the property more desireable for many in the future, this would drive rates further up. We will see what happens, only time will tell, the sale represents yet another part in IHG's "asset light" strategy.
IMHO, IHG should've retained ownership of their IC flagships around the world incl. London, Paris, New York and Hong Kong.
Yeah it's crazy... flagship hotels in major markets, all divested to different investors.
Who's to say where these properties will be in 10-15 years...
ICHG never sell a property without a long term lease commitment for themselves.
This might be true, but it's the long term and the new owner who does prevail in the longer term, no contract is "unbreakable".
True enough but I am sure IC got locked in pretty good at a property like that.
Perhaps, but it wouldn't be the first time even in recent years that the IHG flag has been pulled from an IC hotel, or that an IC has been demoted into another brand within IHG. Paris is a big market, but IHG has made changes even in big markets recently.
Within the last couple of years the IC O'Hare is gone, the IC at Deira Creek is now a Radisson, the IC in Baltimore is now a Royal Sonesta, the IC in Santo Domingo is now a Crowne Plaza, and I'm sure there are others which I'm missing.
I understand they're bringing in some fresh properties into the mix at The O2 and in LA, but I'd rather have more options for IC redemptions than less. Hopefully Paris Le Grand will remain an IC for years to come, but you never know.
None those other properties were previously ICHG owned and the landlords probably made the deals unappealing to ICHG or they got outbid by other chains upon renewal of the lease.
Le Grand is still IC.
Speaking of which, has anyone stayed at the IC Le Grand?
I'll be there in late May with Mrs Willie, I'm Ambassador Spire. Not expecting any huge upgrade.
I have stayed at the IC Paris Le Grande - for me (just a Plat Ambassador), I thought it was elegant and convenient (closer to L'Opera than the Park Hyatt). Burned a free night on Christmas rather than revenue -- doesn't meet the profile for revenue nights for me.
I'm staying there right now. I'd say the renovation went quite well.