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| The sale of the 685-room InterContinental New York Barclay might be at hand, according to analyst David Loeb. |
NEW YORK—The sale of the InterContinental New York Barclay is progressing, according to InterContinental Hotels Group.
In a statement to the Hotel Investment Barometer,IHG said the 685-room property is “progressing through discussions with one party.”
“We intend to sell down our owned estate only in the most prudent manner for our company and shareholders, as in 2011 where our asset disposals were at a 22% premium to net book value,” according to IHG. “We continue to deliver on our asset-light strategy; and announced at Interims that the InterContinental London Park Lane likely will be our next asset disposal as the InterContinental London Westminster opens in 2013.”
R.W. Baird & Company analyst David Loeb said in a research note to clients that the sale of the Barclay is “nearing completion.” Loeb said the deal now only requires buyer due diligence on the hotel’s $100-million refurbishment project.
The hotel has a net book value of $218 million, according to IHG. Proceeds from a sale of the Barclay will likely go toward helping support IHG’s recently announced $1 billion return of capital to shareholders because of solid demand in the United States.