LONDON— InterContinental Hotels Group plans to sell off $926.7 million worth of its hotels as it continues to streamline its asset portfolio. According to North County News here most of the hotels “earmarked for disposal” were located in North America mainly comprising the InterContinental hotels in Miami and Chicago and hotels under the Crowne Plaza and Holiday Inn brands. These properties will only be sold if they gained satisfactory prices, the company said in the report, which noted IHG intends to focus on its management and franchise businesses. The move will bring the total net book value of hotels either sold or being disposed of by the group to almost $1.86 billion. Since its demerger in April last year, the report indicated IHG has sold 28 hotels valued at of more than $595.5 million. In 2004, the hotels being divested are expected to generate about $27.9 million of earnings before interest and tax and $72.5 million of EBITDA. IHG intends is to retain its management contracts. The report quotes Richard North, IHG chief executive, as saying: : “Todays announcement is a further step in the execution of our strategy of reducing the capital intensity of the business and enhancing return on capital. We will continue to grow our already large managed and franchise businesses by capitalizing on the strength of our brands and proven franchise and hotel management skills.” SOURCE: North County News
