Sale of European Hotels

InterContinental Hotels Group PLC
13 March 2006

13 March 2006



                         INTERCONTINENTAL HOTELS GROUP
        SALE OF 24 HOTELS IN CONTINENTAL EUROPE FOR €352MILLION (£240m)


InterContinental Hotels Group PLC ("IHG") today announces it has sold a
portfolio of 24 hotels (4,903 rooms) to a subsidiary of Westbridge Hospitality
Fund LP ("Westbridge"). Westbridge is a hospitality investment fund managed by
Westmont Hospitality, one of IHG's largest franchisees. The portfolio has been
sold for €352m (approximately £240m), marginally above net asset value. Proceeds
to IHG in cash and debt assumption are €345.2m (before transaction costs), with
the balance of €6.8m relating to third party minority interests.


The hotels have been sold to Westbridge with 15 year franchise contracts.
Normalised franchise fees are expected to be approximately €4m per annum. The
hotels are located in Continental Europe and operate under the Crowne Plaza,
Holiday Inn, and Express by Holiday Inn brands. The transaction is expected to
complete in the second quarter of 2006.


The hotels generated revenues of €140m, EBITDA of €28m and EBIT of €11m in 2005.


These disposals represent a continuation of IHG's strategy to grow its managed
and franchised business and reduce asset ownership. Since separation in April
2003, IHG has disposed of, or is in the process of disposing of, 175 hotels with
a net asset value of more than £2.8bn. Aggregate proceeds received to date have
been above net asset value. IHG has announced the return of £2.75bn to
shareholders, of which £2.0bn has already been completed. Proceeds received from
the disposal will be used for investment, returns to shareholders, or managing
IHG's debt position.


Andrew Cosslett, Chief Executive of IHG, commented:


"This deal is another significant step in the transformation of IHG. As we focus
on managing and franchising hotels, it is essential that we continue to develop
our relationships with key partners on a global basis. Westmont Hospitality is
one of IHG's largest franchisees, and we are delighted to extend our strong
relationship with them."



For further information, please contact:
Investor Relations (Gavin Flynn, Paul Edgecliffe-Johnson):  [phone]
                                                            [phone]
Media Enquiries (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,
over 3,600 hotels and 537,000 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.



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.



  High resolution images to accompany this announcement are available for the
    media to download free of charge from www.vismedia.co.uk . This includes 
                   profile shots of the key executives.


Transaction details:



1. The purchasing entity is Cooperatie Westbridge Europe 1 U.A.



2. The net asset value of the assets sold was €327m.



3. No material tax charge arises as a result of the transaction.



4. The assets have been sold on a 15x post fee EBITDA multiple.



Disposals announced today:


                                                         2005
                                                           €m
Revenue                                                   140
EBITDA                                                     28
EBIT                                                       11


Hotel                                                  Rooms
Crowne Plaza Amsterdam Schiphol                         242
Crowne Plaza Antwerp                                    262
Crowne Plaza Brussels Airport                           315
Crowne Plaza Hamburg                                    285
Crowne Plaza Heidelberg                                 232
Holiday Inn Amsterdam                                   256
Holiday Inn Bologna City                                162
Holiday Inn Brussels Airport                            310
Holiday Inn Florence                                     92
Holiday Inn Hamburg Kielerstrasse                       105
Holiday Inn Milan                                       119
Holiday Inn Munich City Centre                          580
Holiday Inn Paris Republic                              318
Holiday Inn Vienna South                                174
Express by Holiday Inn Alicante                         120
Express by Holiday Inn Berlin                           251
Express by Holiday Inn Cologne - Muelheim               107
Express by Holiday Inn Dortmund                         107
Express by Holiday Inn Dusseldorf                       150
Express by Holiday Inn Frankfurt Airport                186
Express by Holiday Inn Frankfurt Messe                  175
Express by Holiday Inn Munich                           120
Express by Holiday Inn Troisdorf                        110
Express by Holiday Inn Valencia San Luis                125

Total                                                 4,903





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