InterContinental Hotels Group (IHG) has signed a 20 year management contract with Splendid Hotel Group for a new 254-room six storey InterContinental property in the centre of London. The InterContinental London Westminster is set to open in late 2011.

InterContinental London Westminster will occupy the former Queen Anne’s Chambers, originally built in the nineteenth century. The 120,000 square foot freehold site close to New Scotland Yard is currently office and retail space.

The hotel will be the second InterContinental hotel in the capital. InterContinental London Park Lane was first opened in 1975, and reopened following extensive renovations in 2006 in celebration of the brand’s sixtieth anniversary.

Kirk Kinsell, IHG’s president for Europe, Middle East and Africa, said: “Despite the tough economic times the fact that we continue to sign major deals is testament to the strength of our brands. We’re adding 5,000 rooms in the UK in the next two to three years. The InterContinental London Westminster will open in time for the Olympic Games in London in 2012.”

Splendid Hotel Group is an existing IHG franchisee with Holiday Inn hotels in Manchester and London. The new signing is its biggest acquisition to date.

Shiraz Boghani, managing partner of Splendid Hotel Group, said: “This is by far the largest project we’ve taken on. 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. The strength of the InterContinental brand and the site’s location, close to some of the city’s most famous attractions, makes it the perfect deal for us.”

IHG has 158 InterContinental Hotels & Resorts in 60 countries across the world and 67 hotels in the pipeline.