InterContinental Hotels Group will receive $31 million in liquidated damages as eight Holiday Inns in the US leave the company’s portfolio.
The payment is the result of an agreement between IHG and US hotel owner and management company FelCor.
This will see the eight Holiday Inn branded hotels owned by FelCor, representing 2,526 rooms, leave IHG on March 1.
The eight hotels generated $8.5 million of fees for IHG in 2011, around 1% of total fee revenue in IHG’s Americas region. This represent less than 1% of all rooms branded as Holiday Inn or Holiday Inn Express in the region.
IHG said it continues to grow its presence for Holiday Inn following a relaunch.
More than 12,500 Holiday Inn and Holiday Inn Express rooms were opened and almost 19,000 rooms were signed into the Americas pipeline in 2012.
This takes the Americas system size for the Holiday Inn brand family to more than 315,000 rooms and the development pipeline to over 51,000 rooms as at the end of December.