Following recent speculation, InterContinental Hotels Group (IHG) has confirmed the sale of seven of its European properties to Morgan Stanley Real Estate Funds (MSREF) for 634m euro (£440m, US$806m).

IHG will retain 30-year management contracts on the hotels, which were sold for 80m euro (£55m, US$102m) above their book value of 550m euro (£381m, US$699m), with two 10-year renewal options once that time has expired, giving a total potential contract length of 50 years.

Struan Robertson, managing director and head of MSREF Europe & Middle East, said: “With this transaction MSREF is extending its hotel investment business into Europe. We are pleased to be working with IHG and look forward to expanding our involvement with them around the world.”

The portfolio of hotels – which are located in Cannes in France, Amsterdam in Holland, Budapest in Hungary, Rome in Italy, Frankfurt in Germany, Madrid in Spain and Vienna in Austria – will remain under the InterContinental brand.

The hotels, totalling 2,537 rooms, were put up for sale in January this year. Details: www.ichotelsgroup.com