InterContinental Hotels Group PLC (IHG) said it has sold 24 hotels with 4,903 rooms in continental Europe for 352 mln eur to a unit of Westbridge Hospitality Fund LP, which is managed by Westmont Hospitality, one of IHG's largest franchisees.

IHG said the price was marginally above the net asset value. The proceeds to IHG in cash and debt assumption are 345.2 mln eur before transaction costs. The balance of 6.8 mln eur relates to third party minority interests.

The hotels have been sold to Westbridge with 15 year franchise contracts. Normalised franchise fees are expected to be approximately 4 mln eur per annum.

The hotels are located in Continental Europe and operate under the Crowne Plaza, Holiday Inn, and Express by Holiday Inn brands. The transaction is expected to complete in the second quarter of 2006.

In 2005, the hotels in question generated revenues of 140 mln eur, EBITDA of 28 mln eur and EBIT of 11 mln eur in 2005.

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