IHG to Lose Over 100 Hotels in Default

By Kurt Stolz on 26 August 2020
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An InterContinental Hotel room in Washington, D.C.

InterContinental Hotels Group will lose over 100 properties come November, in one of the first major hotel defaults amidst the coronavirus pandemic.

The chain will see 103 hotels and extended-stay properties reflagged under various Sonesta brands after “following an uncured default by IHG.”

The default caused Service Properties Trust to decide to terminate its agreement with IHG “on or about November 30, 2020.”

“SVC and IHG have had a long relationship which began in 2003, but we were unable to reach a mutually agreeable resolution to the defaults by IHG under our management agreements with them,” said John Murray, SVC’s CEO.  “Therefore, after a period of negotiation with IHG, we determined to terminate IHG and rebrand these hotels with Sonesta.”

Murray said he expects the reflagged hotels to perform “as well, or better, as Sonesta hotels.”

The move involves three InterContinentals, five Kimptons, 11 Crowne Plazas, three Holiday Inns, 20 Staybridge Suites, and 61 Candlewood Suites and locations in Denver, Louisville, Raleigh, Salt Lake City, San Diego, San Juan, Seattle, and Washington, D.C.

IHG defaulted on $8.4 million in guaranteed property returns due SVC in July.

At press time, IHG had not responded to a request for comment on the announcement.

(Photo: Accura Media Group)

Accura News

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