Felcor Agreement

InterContinental Hotels Group PLC
25 January 2006

                         INTERCONTINENTAL HOTELS GROUP

  RENEGOTIATION OF MANAGEMENT AGREEMENT WITH FELCOR LODGING TRUST; PURCHASE OF
                    HOTELS BY HOSPITALITY PROPERTIES TRUST



(LONDON) 25 January 2005-InterContinental Hotels Group PLC ("IHG") today
announces a restructured management agreement with FelCor Lodging Trust Inc ("
FCH"), covering all of the hotels (15,790 rooms) owned by FCH and managed by
IHG.



This new agreement extends the terms of IHG's contracts, rebases incentive fee
payments and deploys capital investment in key hotels to drive value for FCH and
IHG. Key highlights are:



  • 17 hotels (6,301 rooms) will be retained by FCH and managed by IHG, with
    revised contract terms (duration extended to 2025) and rebased incentive
    fees on all the hotels. Additionally, 11 of the 17 hotels will receive
    additional capital investment from FCH totalling some $50m.



  • Hospitality Properties Trust ("HPT") have purchased seven (2,072 rooms) of
    the hotels from FCH for $160m, retaining the IHG flag on these assets. There
    is no increase in IHG's corporate guarantees to HPT as a result of this
    deal. Separately, IHG have sold the Staybridge Suites, Las Colinas, USA, to
    HPT. IHG have also agreed to sell the Holiday Inn, Montego Bay, Jamaica to
    HPT subject to final due diligence. The combined sales price of $35m for
    these two assets is marginally below the combined net book value of the
    assets.



  • Nine further hotels (2,463 rooms) can be sold by FCH, retaining an IHG
    brand.



  • FCH has the right to sell or convert a further 15 hotels (4,954 rooms);
    these may retain the IHG flag.



Andrew Cosslett, Chief Executive, IHG commented: "Agreeing this deal with FelCor
is a big step forward. It improves the quality of our brand distribution and
lays out clear performance criteria for both parties. We are also very happy to
deepen our long-standing relationship with HPT. We look forward to continuing
our successful partnership with both companies to grow our brands still further.
"



"We are pleased that we found a solution with IHG that meets both our strategic
objectives," said Thomas J. Corcoran, Jr., FelCor's President and CEO.



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,
almost 3,600 hotels and 539,000 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 26 million members worldwide.



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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