Intercontinental Hotels Group (IHG.L) has made changes to its management contract with Hospitality Properties Trust covering 130 hotels.

Four contracts with Hospitality Properties Trust have been consolidated into one 25-year contract.  

The contract will see the group fund a security deposit worth $37 million to cover any shortfalls in priority returns and up to 42 hotels will be sold or rebranded.
 
Hospitality Properties Trust will also invest $300 million to renovate the remaining 88 hotels.

Richard Solomons, chief executive of Intercontinental Hotels Group, said, 'Our relationship with Hospitality Properties Trust which commenced in 2003 has been a beneficial one, allowing us, amongst other things, to accelerate our expansion into the fast growing extended stay segment.

He added, 'The exit of up to 43 hotels and the $300 million investment by Hospitality Properties Trust in the remaining 88 hotels will leave us with a high quality brand defining portfolio which will be well placed to deliver superior returns to Intercontinental Hotels Group over the long term.'

To receive more relevant articles like this one, why not sign up to our weekly newsletters, click here