Sale of London May Fair Hotel

InterContinental Hotels Group PLC
22 August 2003

22 August 2003

                      InterContinental Hotels Group PLC -

                    Sale of London May Fair Hotel Limited to

                   Radisson Edwardian Hotels for £115 million





InterContinental Hotels Group PLC (IHG) today announces that it has exchanged
contracts for the sale of London May Fair Hotel Limited, the holding company for
the InterContinental May Fair London, to Radisson Edwardian Hotels for £115
million in cash. The transaction is expected to complete on or before 11
September 2003 and represents a small discount to book value, which includes the
costs associated with the cancelled refurbishment of the property. The sale will
not have a material effect on earnings in the year to December 2003.

The price represents an EBITDA multiple of 16.7 times 2002 earnings and nearly
£400,000 per room. In addition, IHG will no longer have to incur the substantial
capital expenditure needed to refurbish the hotel.

Following the sale, the InterContinental brand will continue to have a strong
presence in London with the owned flagship hotel on Hyde Park Corner - the
InterContinental London, and the managed property on Portman Square - the
InterContinental Churchill London.

Commenting on the transaction Richard North, Chief Executive, IHG said:

"We have clearly expressed our strategy of driving enhanced returns through
reducing capital intensity. We are therefore in the process of selling hotels
that we do not need to own, providing we can achieve fair value. The sale of the
InterContinental May Fair meets both these tests and is another example of the
successful execution of this strategy."


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For further information, please contact:

Jo Guano, Investor Relations                          020 7409 8134
Dee Cayhill, Corporate Affairs                        020 7409 8101




Note to Editors


InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG
(ADRs)), owns, manages, leases or franchises, through various subsidiaries, more
than 3,300 hotels and 515,000 guest rooms in nearly 100 countries and
territories around the world (www.ichotelsgroup.com). The Group owns a portfolio
of well recognised and respected hotel brands including InterContinental Hotels
& Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn, Express by Holiday Inn
and Staybridge Suites, and also has a controlling interest in Britvic, the
second largest soft drinks manufacturer in the UK.

InterContinental Hotels Group offers information and reservations capability on
the Internet - www.intercontinental.com for InterContinental Hotels & Resorts,
www.crowneplaza.com for Crowne Plaza Hotels & Resorts, www.holiday-inn.com for
Holiday Inn hotels, www.hiexpress.com for Express by Holiday Inn hotels,
www.staybridge.com for Staybridge Suites by Holiday Inn hotels and, for the
Group's rewards programme, www.priorityclub.com

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










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