COMMERCIAL Intercontinental Hotel goes to Fletchers

Press, Volume CXVI, Issue 34123, 8 April 1976, Page 20

COMMERCIAL Intercontinental Hotel goes to Fletchers

The proposals of Fletcher Holdings, Ltd, regarding the running of ti e Intercontinental Hotel in Auckland have been approved by the board of directors of Auckland Intercontinental Properties, Ltd, the organisation which manages the hotel.

Fletcher Trust and Investment Company. Ltd. will i become a substantial share-j holder in A.1.P.. and Vacation Hotels, Ltd. will lease the hotel from A.I.P The Fletcher proposals.) which have been approved ; conditionally by the Government. include the purchase by Fletchers of the present shareholding in A.I.P of Intercontinental Hotels Cor-' poration. Tourist Hotel Corporation. and Air New Zealand. Ltd: it is Fletchers.’ intention to hold no more than! 50 per cent of the com-’ pany’s shareholding within 12 months. Intercontinental Hotels Corporation is a whollyowned subsidiary’ of Pan American World Airways — the largest airline in the world — while Vacation Ho-1 tels runs eight hotels in .the South Island, including the) Ramada Inns, and three in the North Island. The proposals allow for the continuing ownership by A.I.P. of the Princes; Court office building, Eden Court flats, and the car-: parking facilities on Eden Crescent. The revenue from) these, together with the rental from the Vacation

j lease of the hotel, will provide A.I.P. with a profitable operation which will allow the payment of dividends to shareholders from the second year of full operation as a property-owning company. Vacation will commence its lease on the hotel on .June 1. The hotel will continue to operate under its ’present name, and will be' closely associated with the j Intercontinental group of ! hotels under a franchise ar-

! rangement with IHC which iwill enable it to continue as a member of the world-wide chain. ■ Fletchers- will take over ! the management of those properties which are not included in the Vacation lease. The present directors representing public share-

holders, namely Mr Frank i Renouf. Mr Robert Milne, and Mr Robert Owens, would continue in office; Fletchers would appoint three new directors. It is understood that the application from Fletchers was considered together with an approach from the Russell Alpine group of companies. The Alpine group offered finance to buy the shares of the International Hotels Corporation. which holds a 39.8 per cent interest in the hotel, and other New Zealand and Government-held shares as necessary to secure a working arrangement, and it has also applied for a management or lease contract of the hotel. The application of the Al-

. pine group was first lodged . in December The Russell Alpine group : has more than 50 businesses : franchised or associated with it in New Zealand. It is : associated with the franchise , name. Inns of America Cor- • poration. in the United i States, and introduced ac- • commodation franchising into New Zealand more than I 12 months ago. It had a long and success- • ful background of hotel ; management in eight coun--5 tries, including the United ■ States. Britain, and Europe, I a spokesman for the group • said in Christchurch yesterday. i The accumulated losses of • Auckland Intercontinental, Properties to June 30 total-! led $4,197,697. j