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Le Grand in Paris sold for EUR330 million

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InterContinental Paris - Le Grand was the last European asset that UK-based InterContinental Hotels Group PLC (IHG) owned; now the impressive property has been sold to a company that hails from the land of Arabian Nights. 

The 470-room hotel, which overlooks the Opera Garnier, has been bought by Qatar-based investor Constellation Hotels Holding Limited (Constellation) for a grand sum of EUR330 million. 

JLL's Hotels & Hospitality Group advised the InterContinental Hotel on the sale and manage-back agreement. European news outlet Euronews reports that the Intercontinental will continue to manage the hotel for 30 years. There is also the possibility of three 10-year extensions beyond that.

Constellation has also committed to undertake a major makeover of as part of its long term management agreement.

The hotel boasts a proud history of hosting royalty and represents an ambitious property development move by the the buyer.  

In a statement released by JLL, the company asserts: "The sale represents a rare opportunity in a market with high barriers to entry due to lack of supply and huge demand for trophy assets."

Vice President of JLL's Hotels & Hospitality Group in London Patrick Saade called the sale a "landmark deal" for the British vendor.

"[The sale] marks the largest hotel deal in Paris this year. The close relationship we have with both parties and our knowledge of the requirements on both sides of the deal was essential in helping us to complete the sale," he added. 

Global CEO of JLL's Hotels & Hospitality Group Mark Wynne Smith commented this signals the strong value in strategic partnerships.

"We value our relationship with clients and investors and throughout the years have earned their trust at the highest decision making level. We know this buyer extremely well and understand their strategic requirements. Strategic partnerships like this help us reach our aspirations of delivering truly global investment strategies that deliver maximum value for our clients," he said. 

Date Published: 26 May 2015
Category: General News

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