InterContinental Hotels to Buy Candlewood Suites Brand, Hotels
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Atlanta-InterContinental Hotels Group (IHG) plans to acquire 12 Candlewood hotels for $90 million, the Candlewood Suites brand for $15 million and increase the company's management portfolio by more than 30 percent in the Americas. The deal, subject to CNDL shareholder approval in December, will increase IHG's brand portfolio to six brands, as well as add 108 hotels and nearly 12,500 rooms in the Americas.
This two-part transaction involves three parties: IHG, Candlewood Hotel Corp. (CNDL) and Hospitality Properties Trust (HPT). IHG will acquire for $15 million in cash the Candlewood Suites brand from CNDL and be licensor on all current and future franchise agreements. IHG will enter into an agreement with HPT, which owns 64 Candlewood Suites hotels and will purchase an additional 12, to manage these 76 properties. The management agreements will be for 25 years with options to extend. -Atlanta Business Chronicle