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.”