InterContinental Hotels Group has sold the InterContinental London Park Lane for £301.5 million.
Constellation Hotel (Opco) UK, which is an affliliate of Middle Eastern private investment group Constellation Hotels, purchased the hotel which has been on the market since February 19.
Richard Solomons, chief executive of IHG, said: “We are very pleased to be working closely with Constellation Hotels, a respected hotel investor, who will be a great partner and with whom we look forward to building a long term relationship.”
Although it has secured a 30-year management contract on the hotel with fees estimated at a possible £4 million per year, IHG now owns less than 10 of its original 4,600 hotels.
The sale of the InterContinental London Park Lanes takes the number of hotels sold by IHG to 191, totalling proceeds of £4 billion.
Just over £60 million generated from the sale will go towards providing security over UK pension liabilities which were previously secured against the hotel.
“It is another step in our long standing commitment to reduce the capital intensity of IHG.” said Solomons.