IHG Extends Management Deal with HPT

27th July 2011 (Last Updated July 27th, 2011 18:30)

InterContinental Hotels Group (IHG) has consolidated, revised and extended its four existing management deals with Hospitality Properties Trust (HPT) for 130 hotels into one new 25-year management contract. IHG said that its guarantee on the earlier contracts has been eliminated and wo

InterContinental Hotels Group (IHG) has consolidated, revised and extended its four existing management deals with Hospitality Properties Trust (HPT) for 130 hotels into one new 25-year management contract.

IHG said that its guarantee on the earlier contracts has been eliminated and would not be renewed; the company will fund a security deposit of $37m to cover any future shortfalls in HPT’s owner priority returns.

Under the revised single management contract, effective from 1 July 2011, HPT will rebrand or sell up to 42 hotels, leaving 88 properties under IHG’s brands.

HPT will invest $300m in renovating the remaining hotels.