InterContinental sells London Park Lane for $457M

Discussion in 'IHG | Rewards Club/Ambassador' started by uggboy, Mar 28, 2013.  |  Print Topic

  1. uggboy
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    uggboy Gold Member

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    || InterContinental sells London Park Lane for $457M ||

    Constellation is the same Middle Eastern investor who bought parts of the Louvre Luxury Hotels portfolio earlier in the year. A handsome price for such a prime piece of real estate. We will see how the relationship between the new owners and IHG will work out in the long term. Nothing against selling assets at attractive valuations, but they're is always the risk that the owner has other plans than the manager. Only time will tell.
     
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  2. My assumption is they have at least a ten year lease and an exclusive option going forward. That would be quite typical of the buyer to want continuity of reven ue
     
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  3. uggboy
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    With all the ongoing disputes between owners and managers of hotels, it's possible that arguments on how to run a hotel could arise, rather sooner than later. I remember the recent case of the Eden Roc in Miami, here Marriott had 43 years to go / out of 50 years / as manager of the hotel and was ousted by the owners.
     
  4. Maybe, but my assumption is the ICHG has a stronger lease than that. If not, it is their stupidity.
     
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