IHG Reduction of Capital

InterContinental Hotels Group PLC
30 June 2005



               NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO
                           AUSTRALIA, CANADA OR JAPAN


                       INTERCONTINENTAL HOTELS GROUP PLC


30 JUNE 2005


IHG Reduction of Capital


At a hearing of the High Court of Justice in England and Wales on 29 June 2005,
the Court approved the proposed reduction of capital (the "Reduction") of
InterContinental Hotels Group PLC ("IHG").  The Reduction became effective
earlier today when the nominal value of each ordinary share was reduced from 625
pence to 10 pence.  The Reduction facilitates the creation of distributable
reserves in IHG, providing additional financial flexibility going forward.



Citigroup Global Markets Limited is acting for IHG and no-one else in connection
with the transaction of which the Reduction forms part and will not be
responsible to anyone other than IHG for providing the protections afforded to
its clients or for providing advice in relation to the transaction or the
contents of this announcement.


This announcement does not constitute an offer or invitation to purchase
securities.



For further information, please contact


InterContinental Hotels Group


Media Enquiries
Leslie McGibbon                                      [phone]
                                                     [phone]

Investor Relations
Gavin Flynn, Paul Edgecliffe-Johnson                 [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 more than 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.


                      This information is provided by RNS
            The company news service from the London Stock Exchange