IHG has agreed to sell InterContinental London Park Lane to Middle East investment group Constellation Hotels for £301.5m, 62 per cent above its December 2012 net book value.

IHG has secured a 30 year management contract on the hotel with management fees expected to be £4m per annum. The transaction is expected be complete in the second quarter of 2013.

The hotel was opened in 1975 as a purpose built InterContinental and has been owned by IHG since 1999.

IHG indicated in November 2012 that the hotel would be the next major asset considered for sale and announced on 19 February that it was being marketed. Since becoming a standalone company in April 2003, IHG have sold 191 hotels for proceeds of £4bn.

Richard Solomons, chief executive of IHG, said: “It is another step in our long standing commitment to reduce the capital intensity of IHG. We are very pleased to be working closely with Constellation Hotels, a respected hotel investor, who will be a great partner and with whom we look forward to building a long term relationship.”