InterContinental Hotels Group said on Thursday that it had agreed to sell its Le Grand hotel in Paris to Qatari group Constellation for 330 million euros ($441 million).
It said that Constellation planned to invest over time an estimated 60 million euros to renovate Le Grand, which overlooks the Paris Opera House.
The hotel, which has 470 guest rooms, including 70 suites, opened in 1862. It has operated under the InterContinental brand since 1982.
IHG will retain a 30-year management contract on the hotel which could lengthen to 60 years under the terms of the cash deal, it said in a statement.
The owner of the InterContinental hotels brand will additionally receive 4.0 million euros a year for continuing to manage Le Grand, IHG said in a statement.
IHG chief executive Richard Solomons said the sale of the "iconic hotel" follows Constellation`s recent purchase of InterContinental London Park Lane and its majority investment in InterContinental New York Barclay.
IHG said in its statement that it had "received a binding offer from Constellation Hotels Holding Limited to acquire InterContinental Paris".
First Published: Thursday, August 07, 2014, 15:33