The expected sale of a luxury hotel in Paris, which Hotel Management reported on back in August, has now been confirmed: InterContinental Hotels Group has accepted a €330 million, or approximately $405 million, cash offer from Constellation Hotels Holding for Le Grand hotel in Paris.
Terms of the deal include €60 million to renovate the property. The sale is expected to be complete by the end of the first quarter of 2015
Constellation and IHG have been conducting rounds of business of late: Constellation was also the buyer of the InterContinental London Park Lane and made a majority investment in the InterContinental New York Barclay.
Back in August, Richard Solomons, CEO of IHG, had this to say about the imminent sale: "This announcement demonstrates the continued successful implementation of our asset-light strategy and the strength of our relationship with Constellation, following its recent purchase of InterContinental London Park Lane and its majority investment in InterContinental New York Barclay."
Le Grand, located in central Paris overlooking the Opera House, has 470 guestrooms and opened in 1862. It has been operated under the InterContinental brand since 1982.
As evidenced above, IHG has been on a divestment path in recent times. Apart from the Park Lane and Barclay, IHG sold the Mark Hopkins hotel in San Francisco, in February, and, as reported by HM, is rumored to be looking for a buyer of the InterContinental Hong Kong, for a possible $1 billion.
In further IHG news, its former president of the Americas, Kirk Kinsell, bolted for Loews Hotels & Resorts last week to become its new CEO.