Qatari-backed group buys luxury London hotel

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InterContinental Hotels Group announced Thursday they have agreed to sell their London Park Lane hotel to Qatari investors, adding to the Gulf state’s growing portfolio of blue-chip property in Britain.

IHG said in a statement they had sold the 447-room property to Constellation Hotel UK, an affiliate of Constellation Hotels Holding, “a Middle Eastern private investment group” for £301.5 million ($457.5 million, 356.5 million euros).

Constellation is a Luxembourg-based holding company with links to Qatar.

Park Lane is an exclusive street featuring many top hotels overlooking Hyde Park.

Qatar already had a strong presence in London, having 95-percent financed The Shard, Western Europe’s tallest skyscraper, and it also owns the luxury department store Harrods.

IHG will continue to manage the hotel for 30 years, with three 10-year extensions at their discretion, giving an expected 60-year contract length.

The hotel was opened in 1975 and has been wholly owned by IHG since 1999. It generated revenues of $89 million in 2012.

The transaction is expected to be completed in the second quarter of this year.

Since 2003, IHG has sold 191 hotels for proceeds of $6.1 billion.

“It is another step in our long-standing commitment to reduce the capital intensity of IHG,” said chief executive Richard Solomons.