InterContinental Hotels Group, Europe’s second-largest publicly traded hotel operator, accepted a €330 million ($405 million) cash offer from Constellation Hotels Holding for Le Grand hotel in Paris.
The terms are the same that Constellation offered in August, when the company also promised to invest €60 million to renovate the property, Denham, England-based InterContinental said in a statement today. InterContinental will retain a 30-year contract to manage the hotel with the right to three 10-year extensions, InterContinental said in August.
InterContinental, owner of the Holiday Inn and Crowne Plaza brands, has been divesting properties over the past 10 years as it focuses on operating hotels rather than owning them. The company closed the sales of the Mark Hopkins San Francisco and an 80 percent stake in the New York Barclay earlier this year.
The Paris sale is expected to be complete by the end of the first quarter of 2015, according to today’s statement.
Le Grand (pictured), located in central Paris overlooking the Opera House, has 470 guest rooms, including 70 suites. It opened in 1862 and has operated under the InterContinental brand since 1982.
Bloomberg News, edited by Hospitality Ireland