InterContinental Hotels Group (IHG) is selling its ownership interest in InterContinental Hong Kong to a consortium of investors named Supreme Key Limited for $938m.

The consortium, which is advised and managed by Gaw Capital Partners, paid a cash deposit of $94m for the purchase, and is expected to pay the rest of the amount in cash upon completion of the acquisition.

Supreme Key also pledged to invest a significant amount towards renovation of the property, which is expected to start in 2017 and expected to be completed within 18 months.

"The InterContinental Hong Kong is an exceptional property and an iconic hotel in our portfolio."

Though Supreme Key will own InterContinental Hong Kong, the management will remain in IHG’s hands, as it will retain a 37-year management contract with ten-year extension rights.

The consortium will pay $8m per annum as management fees to IHG.

InterContinental Hong Kong opened in 1980. It features 503 guest rooms, three Michelin-starred restaurants, along with meeting and banqueting facilities.

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It is located on the Kowloon Waterfront overlooking Victoria Harbour and guests can enjoy Hong Kong’s skyline from their rooms.

IHG CEO Richard Solomons said: "The InterContinental Hong Kong is an exceptional property and an iconic hotel in our portfolio.

"This sale highlights the enduring appeal of InterContinental as one of the world’s leading luxury hotel brands.

"We are very pleased to be working closely with a highly regarded hotel investor that will be a great partner for IHG and with whom we look forward to building a successful long term relationship."