Bond Tender Offer

InterContinental Hotels Group PLC
11 November 2004

InterContinental Hotels Group PLC

11 November 2004



                                 Press Release




InterContinental Hotels Group PLC launches bond Tender Offer.

InterContinental Hotels Group PLC ("IHG") announced today that it is offering to
purchase for cash (the "Tender Offer") its €600 million 4.75% Notes due 20
October 2010 (the "Notes"). In conjunction with the Tender Offer, IHG will be
calling noteholders' meetings seeking to add a call option to the Notes to
enable IHG to redeem those Notes which are not submitted in the Tender Offer
(the "Noteholders' Meetings").

IHG has recently signed a new £1.6bn syndicated bank facility which will provide
it with flexible funding for the next five years. The Tender Offer demonstrates
IHG's continued commitment towards optimising its sources of funding and
provides 2010 Noteholders with the opportunity to realise price gains on the
Notes.

The Tender Offer begins on 11 November 2004 and ends on 3 December 2004 at 5:00
p.m. (CET). The Noteholders' Meetings are scheduled to occur on 6 December 2004.
Assuming successful passage of the proposed resolutions at the Noteholders'
Meetings, the Tender Offer's applicable cash prices will be set on 7 December
2004 at 11:00 a.m. (CET) with settlement occurring soon thereafter.

Noteholders responding to the Tender Offer by 5:00 p.m. (CET) on 24 November
2004 will receive the full tender price, with those responding thereafter
receiving a reduced tender price. Pricing details of the Tender Offer are as
follows:

Issuer:  InterContinental Hotels Group PLC

Notes:   €600 million 4.75% Notes due 20 October 2010 (ISIN: XS0178293196)

Reference Government Security: DBR 5.25% Notes due 4 July 2010

Fixed Tender Spread for respondents on or before 5:00 p.m. (CET) on 24 November
2004:

+40 bps

Illustrative Cash Price*: 105.429

Fixed Tender Spread for respondents after 5:00 p.m. (CET) on 24 November 2004:

+52 bps

Illustrative Cash Price*: 104.788

*Based on adding the Fixed Tender Spread to the bid yield to maturity of the
Reference Government Security quoted as of 10 November 2004 and converting to a
cash price, assuming a settlement date of 9 December 2004.

The Tender Offer will be executed through the relevant clearing systems. Full
details of the Tender Offer and the Noteholders' Meetings can be found in the
Notice of Terms of Tender Offer dated 11 November 2004.

J.P. Morgan Securities Ltd. is acting as Lead Dealer Manager for the Tender
Offer. For further details, please contact:

John Cavanagh on [phone] or [e-mail].

Barclays Capital and HSBC Bank plc are acting as Co-Dealer Managers for the
Tender Offer.

HSBC Bank plc of 8 Canada Square, London E14 5HQ is acting as Tender Agent for
the Tender Offer.









The distribution of this document in certain jurisdictions may be restricted by
law.  Persons into whose possession this document comes are required by IHG,
J.P. Morgan Securities Ltd., Barclays Capital and HSBC Bank plc to inform
themselves about, and to observe, any such restrictions.

This press release does not constitute, or form part of, any solicitation of any
offer or invitation to sell any securities in any jurisdiction nor shall it (or
any part of it), or the fact of its distribution, form the basis of or be relied
on in connection with any contract therefore. No indications of interest in the
Tender Offer are sought by this press release.

The Tender Offer is not being made to, and tenders will not be accepted from or
on behalf of, holders of the Notes in any jurisdiction in which the making or
tender thereof will not be in compliance with the laws of such jurisdiction.
Please refer to the Notice of Terms of Tender Offer dated 11 November 2004 for
details of further restrictions relating to the Tender Offer.

The Tender Offer is not being made and will not be made directly or indirectly
in, or by use of the mails of, or by any means or instrumentality of interstate
or foreign commerce of, or any facilities of a national securities exchange of,
the United States of America. This includes, but is not limited to, facsimile
transmission, electronic mail, telex, telephone and the Internet. Accordingly,
copies of this document and any related offering documents are not being, and
must not be, mailed or otherwise transmitted or distributed in or into the
United States of America. Any purported acceptance of the Tender Offer resulting
directly or indirectly from a violation of these restrictions will be invalid.
The Tender Agent will not accept any tender on behalf of IHG by any such use,
means, instrumentality of facility of from within the United States.  Any
Noteholder who holds its notes through a custodian in the United States should
contact the Lead Dealer Manager.

The Tender Offer is not being made in the Republic of Italy ("Italy") and the
tender offer document has not been submitted to the clearance procedure of
Commissione Nazionale per le Societa e la Borsa pursuant to Italian laws and
regulations and may not be used in Italy in connection with the Tender Offer.
Accordingly, holders of Notes are hereby notified that, to the extent such
holders are Italian residents or located in the Republic of Italy, the Tender
Offer is not available to them and, as such, any tenders received from such
persons shall be void and neither the tender offer document nor any other
material relating to the Tender Offer may be distributed or made available in
Italy.


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