Disposal

InterContinental Hotels Group PLC
28 February 2005

                                28 February 2005

 INTERCONTINENTAL HOTELS GROUP ANNOUNCES DISPOSAL OF MAJORITY INTERESTS IN TWO
                    INTERCONTINENTAL HOTELS IN UNITED STATES


InterContinental Hotels Group PLC ("IHG") today announces it has agreed the
acquisition by Strategic Hotel Capital, Inc. ("SHC") of 85% interests in two
hotels in the United States. IHG will receive approximately $287m in cash
(before transaction costs) based upon a total value for both hotels of
US$303.5m, $12m in excess of net book value.



The two hotels, the InterContinental Chicago (807 rooms) and the
InterContinental Miami (641 rooms), will continue to be managed by IHG under new
20 year management contracts. IHG has three consecutive options of ten years
each to renew the management contracts, giving a total potential contract length
of 50 years.



The transaction is expected to complete in the first half of 2005, with IHG
retaining a 15% ownership interest in two partnerships that hold the two hotels.



Richard Solomons, finance director of IHG, commented:

"By retaining high quality management contracts, this deal ensures long term
representation of the InterContinental brand on these landmark properties and
reinforces our position as a manager of top quality international hotels. This
also enables us to free up capital from our real estate in a value-creative way,
and to extend our good relationship with Strategic Hotel Capital."



Further transaction details

1. The management contracts signed in respect of the InterContinental Miami and
the InterContinental Chicago will generate ongoing management fees for IHG,
consisting of a base fee calculated as a rising percentage of revenues and an
incentive fee based on hotel cashflow, and additionally a partnership return
from its 15% retained interest.



2. The tax potentially payable on these transactions has already been largely
provided for. The 2005 tax charge to the profit and loss arising from the
transaction should not exceed $13m and the cash tax payable in 2005 should not
exceed $6m.



3. The partnerships will be approximately 65% debt financed. IHG's interests in
the partnerships have a book value of $16m.









Since Separation in April 2003, IHG has disposed of or agreed to dispose of 47
hotels (including those in today's announcement) with proceeds of approximately
£730m. 90 properties remain on the market with a net book value of £1.5 bn.



Transactions announced today: 85% interests in two hotels, 1,448 rooms, based on
total value for the two hotels of $303.5m.


Financial results for the two hotels
                                                
(100% interest)                                       2004e               2003
                                                         $m                 $m
Revenue                                                  93                 89
EBITDA                                                   27                 25
EBIT                                                     15                 12
Hotel                                                                    Rooms
IC Chicago                                                                 807
IC Miami                                                                   641


Hotels disposed of or agreed to be disposed of since separation:



Hotel                                             Location          Rooms
IC Austin                                               US            189
IC Central Park South                                   US            208
IC Chicago                                              US            807
IC Houston                                              US            485
IC Miami                                                US            641
IC San Juan                                    Puerto Rico            402
IC Toronto                                          Canada            210
IC Mayfair                                              UK            289
CP Hilton Head                                          US            340
CP Los Angeles Airport                                  US            613
CP Redondo Beach                                        US            346
CP White Plains                                         US            401
CP Midland Manchester                                   UK            303
CP Vanuatu                                         Vanuatu            140
HI Anaheim                                              US            264
HI Atlanta Airport                                      US            190
HI Memphis                                              US            243
HI South Bend                                           US            229
HI Gatwick Crawley                                      UK            217
HI Middlesbrough/Teeside                                UK            134
HI Preston                                              UK            129
HI Plymouth                                             UK            112
HI Sheffield West                                       UK            138
HI Swansea                                              UK            106





                                                   Location          Rooms
HI Adelaide                                       Australia            193
HI Darwin                                         Australia            183
HI Newcastle                                      Australia             72
SBS Alpharetta                                           US            118
SBS Anaheim                                              US            143
SBS Atlanta Perimeter                                    US            143
SBS Auburn Hills                                         US            118
SBS Austin                                               US            121
SBS Boston                                               US            133
SBS Burlington                                           US            141
SBS Carmel Mountain                                      US            116
SBS Charlotte                                            US            117
SBS Columbia                                             US            118
SBS Denver                                               US            115
SBS Eatontown                                            US            131
SBS Fort Lauderdale                                      US            141
SBS Houston Galleria                                     US             93
SBS Myrtle Beach                                         US            119
SBS Portland                                             US            117
SBS San Antonio                                          US            118
SBS Sorrento                                             US            131
SBS Toronto Markham                                  Canada            120
Posthouse Epping                                         UK             79
Total                                                    47         10,016








For further information, please contact:
Investor Relations (Gavin Flynn, Paul Edgecliffe-Johnson):   [phone]
                                                             [phone]
Media Enquiries (Leslie McGibbon):                           [phone]
                                                             [phone]







Notes to Editors



InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG
(ADRs)) is the world's largest hotel company by number of rooms.
InterContinental Hotels Group franchises, manages, leases or owns, through
various subsidiaries, more than 3,500 hotels and 536,000 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 program, Priority
Club(R) Rewards, with more than 23 million members worldwide. In addition to
this, InterContinental Hotels Group has a controlling interest in Britvic, the
second largest soft drinks manufacturer in the UK.


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



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