Australia and NZ Disposal

InterContinental Hotels Group PLC
01 September 2005



                         INTERCONTINENTAL HOTELS GROUP

SALE OF 10 HOTELS IN AUSTRALIA, NEW ZEALAND AND FIJI FOR A$405 MILLION (£170
MILLION)



(LONDON) 1 September 2005-InterContinental Hotels Group PLC ("IHG") today
announced it has sold nine hotels in Australia and New Zealand to Eureka Funds
Management Ltd ("Eureka"), for A$390 million (£164 million) in cash (before
transaction costs), above the net book value of A$315 million (£133 million).



IHG has also sold a further hotel, Holiday Inn, Suva, to FNPF Investment Limited
(FIL) the wholly-owned subsidiary of the Fiji National Provident Fund ("FNPF")
for A$15 million (£6 million) in cash, bringing the total sale price of the ten
hotels to A$405 million (£170 million).



IHG will continue to manage the hotels for Eureka and FNPF under ten year
management contracts, each with an option to extend for ten further years at
IHG's discretion. Management fees in the first full year are expected to be ca.
US$4 million.



The transactions are expected to complete in the fourth quarter of 2005.
Proceeds will be used for general corporate purposes.



The ten hotels (2,310 rooms) were placed on the market in April 2005 as part of
IHG's continuing asset disposal programme.  They consist of InterContinental
Wellington in New Zealand, three Crowne Plaza hotels in Australia, five Holiday
Inn hotels in Australia and Holiday Inn Suva in Fiji.



Andrew Cosslett, Chief Executive, IHG commented: "The team in Australia have
secured a deal which has resulted in transaction terms beyond our initial
expectations and attractive long term contracts. We are delighted to be
establishing long term relationships with business partners of the calibre of
Eureka and FNPF. They join a growing group of leading investors world wide, who
have demonstrated their faith in InterContinental Hotels Group brands and
expertise."



Bob Kelly, Managing Director of Eureka, stated: "The transaction reflects the
increased acceptance of the hotel sector by its institutional investors. We look
forward to a strong relationship with InterContinental Hotels Group. The brand
diversity, location spread and strong business foundation which have been laid
by the Group through its ownership and management over the years were the key
attractions of the portfolio of hotels to Eureka."





Transaction details

1.  IHG has sold nine (9) hotels to Eureka Funds Management Ltd for a total sale
price of A$390 million (£164 million) (before transaction costs), above net book
value of A$315 million (£133 million).



2.  IHG has sold Holiday Inn Suva to the Fiji National Provident Fund for F$19
million (£6 million). Net book value of this asset was £5 million.



3.  No tax charge arises and no cash tax is expected to be payable as a result
of these transactions.



4. Management fees in first full year expected to be ca. US$4 million



5. Since Separation in April 2003, including today's announcement, IHG will have
disposed of 136 hotels with proceeds of £2.0 billion.  Nine properties remain on
the market with a net book value of ca. £220 million.



Sales announced today: 10 hotels, 2,310 rooms, net proceeds of £170 million:

                                                        2004            2003
                                                        US$             US$
Revenue                                                 113              97
EBITDA                                                   27              23
EBIT                                                     16              15


Hotel                                                               Rooms
InterContinental Wellington, New Zealand                              231
Crowne Plaza Canberra                                                 295
Crowne Plaza Coogee Beach                                             207
Crowne Plaza Terrigal                                                 196
Holiday Inn Melbourne                                                 383
Holiday Inn on Flinders, Melbourne                                    200
Holiday Inn City Centre Perth                                         181
Holiday Inn Potts Point                                               288
Holiday Inn Townsville                                                199
Holiday Inn Suva                                                      130



For further information, please contact:


Investor Relations (Gavin Flynn/Paul Edgecliffe-Johnson):   [phone]
                                                            [phone]
Media Affairs (Leslie McGibbon):                            [phone]
                                                            [phone]




Note to Editors:


InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG
(ADRs)) is the world's largest hotel group by number of rooms.  InterContinental
Hotels Group owns, manages, leases or franchises, through various subsidiaries,
more than 3,500 hotels and 535,000 guest rooms in nearly 100 countries and
territories around the world. The Group owns a portfolio of well recognised and
respected hotel brands including InterContinental(R) Hotels & Resorts, Crowne
Plaza(R) Hotels & Resorts, Holiday Inn(R) Hotels and Resorts, Holiday Inn
Express(R), Staybridge Suites(R), Candlewood Suites(R) and Hotel IndigoTM, and
also manages the world's largest hotel loyalty programme, Priority Club(R)
Rewards, with over 24 million members worldwide. In addition to this,
InterContinental Hotels Group has a 47.5% interest in Britvic, one of the two
leading manufacturers of soft drinks, by value and volume, in Great Britain.



InterContinental Hotels Group offers information and online reservations for all
its hotel brands at www.ichotelsgroup.com and information for the Priority Club
Rewards programme at www.priorityclub.com



For the latest news from InterContinental Hotels Group, visit our online Press
Office at www.ihgplc.com/media



Cautionary note regarding forward-looking statements

This announcement contains certain forward-looking statements as defined under
US law (Section 21E of the Securities Exchange Act of 1934). These
forward-looking statements can be identified by the fact that they do not relate
to historical or current facts. Forward-looking statements often use words such
as ' target', 'expect', 'intend', 'believe' or other words of similar meaning.
By their nature, forward-looking statements are inherently predictive,
speculative and involve risk and uncertainty. There are a number of factors that
could cause actual results and developments to differ materially from those
expressed in or implied by such forward-looking statements. Factors that could
affect the business and the financial results are described in "Risk Factors" in
the InterContinental Hotels Group PLC Annual Report on Form 20-F filed with the
United States Securities and Exchange Commission.




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