New York hotel sale to raise $250m for investors

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The Independent Online

Shareholders in the world's biggest hotel group are hoping for news this week that could prompt a $250m (£159m) windfall.

InterContinental Hotels Group boss Richard Solomons is plotting the sale of the New York Barclay hotel, a move that would to free up cash to be distributed to investors, probably through a share buyback. News of progress on this deal could come on Tuesday, when IHG reports its annual results. Profit of $540m is expected from the group's 4,500 hotels worldwide, which include the Holiday Inn and Crowne Plaza brands.

Simon French at Panmure Gordon said: "Given the strength of the US hotel market we look for management to reaffirm its commitment to dispose of the InterContinental NY Barclay in 2012. We have previously estimated that this sale could lead to a $250m cash return to shareholders."

The hotel is a New York landmark, built in 1926 with the support of the Vanderbilt family.