InterContinental Sells 15 US Hotels for $728M

TAMPA, FL-Just days after InterContinental Hotels Group shed 10 Asian hotels, 15 additional properties–all in North America—have flipped. The properties, valued at $728 million, are now in the hands of Hospitality Properties Trust of Newton, MA and Chicago-based Strategic Hotel Capital. The locally based Plasencia Group and its Regent Street affiliate advised InterContinental on this latest move.

The sale brings the total number of assets shed to 121. When IHG unveiled its plan to diminish its ownership portfolio in favor of managing and franchising, it owned a total of 188 properties. A company spokesperson tells GlobeSt.com that the dispositions should be complete by the end of the year. Currently, the firm still holds eight properties in the US. The spokesperson reiterated what was said at the time the strategy was launched—that no sales were planned for key assets in major markets—such as New York City.

In this latest round, Hospitality Properties gained the lion’s share of assets—13—valued at $425 million. Two of the holdings are located in Anaheim, CA and two in Toronto. Single assets that flip to the REIT are in Houston and Austin, TX; White Plains, NY; Los Angeles and Redondo Beach, CA; Hilton Head, SC; Atlanta; Memphis and San Juan, PR. The deal gives 100% ownership to Hospitality while IHG maintains management rights. Executives from Hospitality were not available for comment.