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News Release

London

Jones Lang LaSalle Hotels & Hospitality Group announces the sale of IHG’s interest in the InterContinental London Park Lane


London, 05 April 2013 – On behalf of InterContinental Hotels Group (IHG), Jones Lang LaSalle Hotels & Hospitality Group, as sole exclusive agents, is pleased to announce the sale of IHG’s interest in the InterContinental London Park Lane. The short leasehold interest (approximately 57 years remaining) was acquired by a private Middle Eastern investor for a sum of £301,500,000.

In a continuation of their long-planned “asset light” strategy, IHG strategically timed the sale of their London flagship hotel to take advantage of strong demand for prime central London assets, while acknowledging the shortening term of the lease with The Crown Estate.

The InterContinental London Park Lane benefits from a rich history, together with a long association with royalty and international dignitaries and celebrities. Initially opened in 1975, an extensive £83.0 million refurbishment of the hotel was conducted by IHG in 2005/2007, reaffirming its position as one of London’s premier trophy hotels.

Operated by IHG, under their prestigious InterContinental brand, the 447 room hotel was sold subject to a long term management agreement with InterContinental Hotels & Resorts.

George Nicholas, Executive Vice President, Northern European Transactions, Jones Lang LaSalle Hotels and Hospitality Group, said: “The sale represented an extremely rare investment opportunity with only a handful of trophy Mayfair hotels changing hands during the last decade. We were dealing with numerous qualified investors from all over the world, however, we selected this private investor because they share the same meticulous vision for the asset and passion for the brand”.

“Comprising the largest single asset hotel transaction in EMEA so far in 2013, the sale is record breaking in a number of ways including being the largest ever sale and manageback of a single asset in the London hotel market and the only ever sale & manageback transaction to have occurred on world famous Park Lane”.

George Nicholas added: “We are delighted with this successful outcome, which highlights the continued breadth and depth of investor interest for prime London hotels. This is truly a record breaking transaction”.

Mark Wynne Smith, Global CEO of Jones Lang LaSalle Hotels & Hospitality Group, commented: “We are delighted to have swiftly and successfully completed this transaction on behalf of IHG. In new hands, the hotel will remain first choice among international travellers to London.”

He continues: "In addition to achieving a premium price for one of London’s finest trophy hotels, IHG has secured a new 60 year management contract, which will ensure that their InterContinental brand remains a permanent fixture at No.1 Park Lane for decades to come”.

The sale represents Jones Lang LaSalle Hotels & Hospitality Group’s fourth major UK hotel transaction in 2013, bringing the tally of hotels sold by JLL to over £976m so far this year.


About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 242 million square meters. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management.
In Russia and CIS, Jones Lang LaSalle has offices in Moscow, St. Petersburg, Kiev and Aktau. Jones Lang LaSalle Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011 and 2012 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit www.jll.ru


About Hotels & Hospitality Group
Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centres; mixed-use developments and other hospitality properties. The firm’s more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totalling nearly US$25 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
For more news, videos and research from Jones Lang LaSalle’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s app from the App Store