Qatar investor buys into top New York hotel for $240m

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Qatar's Constellation Hotel Holdings has agreed to acquire an 80 percent stake in a joint venture with InterContinental Hotels Group (IHG) to own and refurbish a top New York Hotel.

Constellation Barclay Holding US, which is an affiliate of the Qatari-based investor, has bought the stake in the InterContinental New York Barclay for $240m.

IHG said in a statement that it will retain a 20 percent interest in the hotel, adding that the transaction is expected to complete in the first quarter of 2014.

It added that it has secured a 30 year management contract on the hotel, commencing in 2014, with two ten year extension rights at IHG’s discretion, giving an expected contract length of 50 years. 

"Constellation Barclay Holding US, and IHG have agreed to invest through the joint venture in a significant refurbishment, repositioning and extension of the hotel," the statement said. 

"This is expected to commence in 2014 and will take place over a period of approximately 18 months," it added.

The hotel opened in 1926 and the freehold has been wholly owned by IHG since 1998. In 2012 the hotel, which has 685 rooms, generated revenues of $75m.

Richard Solomons, chief executive of IHG, said: “InterContinental New York Barclay is an iconic hotel in one of the world’s iconic cities. Today’s announcement demonstrates the enduring strength of the InterContinental brand and deepens IHG’s relationship with Constellation Hotels, a highly respected owner.

"We are delighted to be working in partnership with them to manage and extensively refurbish and reposition the hotel. The result, in what is a prime location in New York, will be a fantastic InterContinental brand presence for IHG in one of the world’s leading hotel markets.”

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Anon

Sell to them at your peril.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Women edge into Gulf boardrooms as economies, societies shift

Women edge into Gulf boardrooms as economies, societies shift

Amina al-Rustamani, CEO of TECOM Investments, is leading the...

2
Dubai mulls rule change to lure more domiciled funds

Dubai mulls rule change to lure more domiciled funds

Proposed rules would create a new class of funds in the Dubai...

Gulf's rift over Qatar may slow investment, reforms

Gulf's rift over Qatar may slow investment, reforms

Analysts suggest dispute may not hurt immediately but could impact...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams