LONDON: InterContinental Hotels Group (IHG) is set to open its new 254-room six-storey hotel in Westminster in central London by late 2011. The 120,000 sq ft site for the hotel is presently office and retail space.

“Despite the tough economic environment the fact that we continue to sign major deals is testament to the strength of our brands,” said IHG’s president for Europe, Middle East and Africa Kirk Kinsell, adding that 5,000 rooms will be added in the UK over the next two to three years.

“The InterContinental London Westminster will open in time for the Olympic Games in London in 2012.”

IHG signed a 20-year management contract on Oct 26 with the Splendid Hotel Group, an existing IHG franchisee with Holiday Inn hotels in Manchester and London.

According to IHG, the new signing is its largest acquisition to date.

“ We specialise in providing the best hotel accommodation in major cities and the new InterContinental London Westminster will be a great addition to our portfolio,” said managing partner of Splendid Hotel Group Shiraz Boghani.

“The strength of the InterContinental brand and the site’s location, close to some of the city’s most famous attractions, make it the perfect deal for us.”

InterContinental London Westminster will be the group’s second hotel in the City. Its London Park Lane hotel was opened in 1975, and reopened following extensive renovations in 2006 in conjunction with IHG’s 60th anniversary.

Guest room at the InterContinental London Westminster