Aug. 7 (Bloomberg) -- InterContinental Hotels Group Plc, Europe’s second-largest publicly traded hotel operator, received a 330 million-euro ($442-million) cash offer from Constellation Hotels Holding Ltd. for its Le Grand hotel in Paris.
Constellation also offered to invest 60 million euros to renovate the property over an unspecified period, Denham, England-based InterContinental said in a statement today. InterContinental would retain a 30-year contract to manage the hotel with the right to three 10-year extensions. The company said it agreed to exclusive talks with Constellation and would now consult with employee representatives in accordance with French law.
InterContinental, owner of the Holiday Inn and Crowne Plaza brands, has been divesting properties over the past 10 years as it focuses on operating hotels rather than owning them. The company completed the sale of the Mark Hopkins San Francisco and an 80 percent stake in the New York Barclay for about $394 million earlier this year.
“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,” Chief Executive Officer Richard Solomons said in the statement.
Le Grand, located in central Paris overlooking the Opera House, has 470 guest rooms, including 70 suites. It opened in 1862 and has operated under the InterContinental brand since 1982, according to the statement.
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