New Franchise Agreement

InterContinental Hotels Group PLC
12 August 2005





12 August 2005





                    INTERCONTINENTAL HOTELS GROUP CONTINUES

                 GROWTH IN THE UK WITH NEW FRANCHISE AGREEMENT



InterContinental Hotels Group PLC ("IHG") announces the signing of a new
franchise agreement for up to 16 hotels in the UK owned by Queens Moat Houses
Limited. Initially 11 of the hotels will be converted to the Holiday Inn brand
and two to the Crowne Plaza brand. Three further hotels may be converted at a
later date.



The initial 13 hotels, managed by Queens Moat Houses UK Limited, will undergo
significant refurbishment as part of the deal and will be operated under a 20
year franchise agreement. These additions will bring the total number of hotels
operating under IHG brands in the UK to 227 (31,909 rooms).



Andrew Cosslett, Chief Executive Officer of InterContinental Hotels Group,
commented:



"This deal is another important step in the development of our brand portfolio
in the UK market. We continue to add to our franchise business and are delighted
to be furthering our relationship with Queens Moat Houses."



Richard Moore, Managing Director of Queens Moat Houses UK Limited, added:



"The decision to franchise an important part of the portfolio in the UK is part
of a new corporate strategy for the Group since Queens Moat Houses was acquired
in October 2004. Strong global hotel brands, combined with new capital
investment in our hotels will provide us with an excellent base for growth in
the future."



Details of the portfolio:


Hotel                                                Rooms
Initial 13 hotels
Holiday Inn Bolton Centre                            132
Holiday Inn Doncaster A1(M) Jct 36                   102
Holiday Inn London - Elstree M25 Jct 23              131
Holiday Inn Harrogate                                214
Holiday Inn Luton South M1 Jct 9                     140
Holiday Inn Manchester Airport                       126
Holiday Inn Peterborough West                        133
Holiday Inn Plymouth                                 211
Holiday Inn London - Shepperton                      185
Holiday Inn Solihull                                 115
Holiday Inn Stratford Upon Avon                      251
                                                     1,740
Crowne Plaza Glasgow                                 283
Crowne Plaza Nottingham                              210
                                                     493
Total                                                2,233

Potential Further three hotels
Moat House Reading (Holiday Inn)                     100
Moat House Gloucester (Holiday Inn)                  120
                                                     220
Moat House Chester (Crowne Plaza)                    160
                                                     380
Potential total                                      2,613





For further information, please contact:
Investor Relations - InterContinental Hotels Group          [phone]

 (Gavin Flynn, Paul Edgecliffe-Johnson):                    [phone]

Media Enquiries - InterContinental Hotels Group             [phone]

(Leslie McGibbon):                                          [phone]



Media Enquiries - Moat House Hotels                         [phone]

(Kara Rose)                                                 [phone]






Notes 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 over 25
    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.



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




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