Debt Refinancing

InterContinental Hotels Group PLC
11 November 2004

InterContinental Hotels Group PLC

11 November 2004



               InterContinental Hotels Group PLC Refinances Debt



InterContinental Hotels Group PLC ("IHG") announces today it has signed a new
£1.6bn syndicated banking facility, which will provide flexible committed
funding over the medium term and will replace its existing $1.5bn syndicated
banking facility. The £1.6bn facility comprises a 5-year £1.1bn revolving credit
facility and a 364-day £500m revolving credit facility. The facility has an
initial margin of 37.5 bps over LIBOR and will be used, inter alia, to finance a
tender offer launched today to repurchase for cash IHG's Euro denominated 4.75%
bonds due 2010, which have a nominal value of €600m, and to finance the separate
redemption at par for cash of those outstanding of IHG's Sterling denominated
5.75% bonds due 2007, which have a nominal value of £18.1m.



The key benefits of the refinancing are:



•        Provision of flexible and certain funding during IHG's programme of
         asset disposals and return of funds to shareholders;

•        Reduced annual financing costs through the new syndicated facility
         being provided at a lower debt coupon than the existing banking 
         facility and the bonds.

Under the tender offer for IHG's Euro denominated 4.75% bonds due 2010, IHG will
invite current bondholders to tender their bonds at a fixed tender spread over a
benchmark German Government bond and to consent to the amendment of the terms of
the bonds to give IHG a call option feature at par on any bonds which are not
submitted in the tender offer.  The offer is expected to result in IHG
repurchasing tendered bonds at a premium to par value. Any repurchase premium
will be treated as an exceptional profit and loss account charge.



Separately, the outstanding Sterling denominated bonds issued by Six Continents
PLC and due 2007 will be redeemed at their nominal principal amount of £18.1m
together with accrued interest to the date of redemption. Notice of early
redemption has been given today to the bondholders.



Full details of the tender offer proposal can be found in the Notice of Terms of
Tender Offer dated 11 November 2004, issued today.



For further information, please contact:



IHG Contacts

Investor Relations:                                        [phone]
Media relations:                                           [phone]



Bondholder Contact for the 2010 Tender Offer

Lead Dealer Manager                                                    JPMorgan
                                            John Cavanagh: [phone]




Important Notice



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 a
listing of further restrictions.

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, and 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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