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Investment with All Nippon Airways (ANA)In December 2006, IHG invested £10m for a 75% stake in a hoteljoint venture with ANA, IHG ANA Hotels Group Japan LLC(IHG ANA), increasing IHG’s portfolio in Japan from 12 hotels(3,686 rooms) to 25 hotels (8,623 rooms). As part of the transaction,ANA has signed 15 year management contracts with IHG ANA forits 13 owned and leased hotels (4,937 rooms).Key owned and leased assetsIn November 2006, IHG reopened the InterContinental London ParkLane following the substantial completion of a major refurbishmentand opened the newly built InterContinental Boston.Asset disposal programmeDuring 2006, IHG achieved further progress with its asset disposalprogramme, including:• the sale of 24 hotels in Continental Europe to a subsidiary ofWestbridge Hospitality Fund LP for £240m, before transactioncosts. IHG retained a 15 year franchise contract on each of thehotels; and• the sale of seven European InterContinental hotels toMorgan Stanley Real Estate Funds (MSREF) for £440m,before transaction costs. IHG retained a 30 year managementcontract on each of the hotels, with two 10 year renewals atIHG’s discretion. The long-term contracts ensure continuedrepresentation of the InterContinental brand in key Europeanmarkets.These transactions support IHG’s continued strategy of growing itsmanaged and franchised business whilst reducing asset ownership.Since April 2003, 174 hotels with a net book value of £2.9bn have
been sold, generating aggregate proceeds of £3.0bn. Of these
174 hotels, 156 have remained in the IHG system through either
franchise or management agreements
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