Staybridge Suites UK Launch

InterContinental Hotels Group PLC
06 April 2005

6 April 2005


                         INTERCONTINENTAL HOTELS GROUP
                     TO LAUNCH STAYBRIDGE SUITES IN THE UK


InterContinental Hotels Group (IHG), today announces the launch of the
Staybridge Suites brand in the UK with the signing of two management and
franchise agreements with Stay Investments Ltd and The Splendid Hotel Group.


The new build 124 bedroom Staybridge Suites, Brentford, London will open in late
2006 and marks the introduction to the UK market of the first major hotel brand
focused on extended stay guests - those who stay for more than five nights. The
hotel will be managed by IHG under a 20 year management agreement with Stay
Investments Ltd.


A further 113 bedroom new build Staybridge Suites will open in South Bank,
London in late 2006. The hotel will be managed by IHG for the first three years
before converting to a 17 year franchise agreement with The Splendid Hotel
Group.


IHG currently operates 79 Staybridge Suites in North America and with 52 new
properties in the pipeline it is the fastest growing upscale extended stay brand
in the market.


Andrew Cosslett, Chief Executive, InterContinental Hotels Group, said: "We have
worked closely with our network of franchisees to build the success of the
Staybridge Suites brand in the United States. We are now able to use our
American experience and expertise to extend the brand into the UK market,
illustrating the power of operating a family of brands across key market
segments. As an industry leader we see opportunity to drive innovation and
creativity in new markets. Extended stay is one of the fastest growing segments
in the US and we believe that this trend will follow in the UK, where we aim to
lead the market."



Louis Woodcock, Director of Stay Investments Ltd, added: "We have eagerly
watched the success of Staybridge Suites in the United States and are delighted
to have this opportunity to work with IHG to lead the extended stay market in
the UK."



Mr Shiraz Boghani, Managing partner, The Splendid Hotel Group, added: "
Developing Staybridge Suites reinforces our excellent relationship with IHG and
illustrates our belief in the future growth of the exciting extended stay
segment. "


Staybridge Suites will offer one bedroom and studio suites, fully equipped for
the extended stay business traveller, with rooms including a flat screen TV, DVD
player and fully equipped kitchen including cooker, fridge/freezer, dishwasher
and microwave. Free laundry and a grocery shopping services are also available.


Extended stay - facts & figures

  • 8.8 million room nights were taken by UK domestic travellers who stayed
    more than five nights in the same place in 2003.

  • 5.1 million room nights were taken by overseas visitors to the UK who
    stayed more than four nights for business in 2003.

  • The extended stay market in the United States now has 280,000 rooms in
    approximately 2000 hotels.


Notes to Editors



Staybridge History

1997       Staybridge Suites by Holiday Inn is launched for long-stay travellers
           in America

1998       The first Staybridge Suites by Holiday Inn opens in Alpharetta,
           Georgia, USA

2002       Staybridge Suites becomes the first upmarket extended stay hotel
           brand to reach 50 hotels in just under four years

2003       InterContinental Hotels group (IHG) sells 16 Staybridge Suites hotels
           to Hospitality Properties Trust (HPT) for US$185 million and also
           enters into an agreement to manage these hotels

2003       HPT converts 14 other suite hotels to the Staybridge Suites brand
           under IHG management

2004       Staybridge Suites brand reaches 75 hotels with addition of Eatontown,
           New York. The brand reached this point of significant mass, faster 
           than any of its competitors marking yet another distribution record 
           within the extended-stay segment

2005       Staybridge Suites launches in the UK.



• The Splendid Hotel Group, a private partnership, was formed in 1986
and purchased its first 16 bedroom budget hotel in Bayswater, London. Expansion
soon followed into other areas of London including Victoria, Kings Cross and the
East End of London.  In 1996, an opportunity arose to create the first Express
by Holiday Inn in London. Since then, the group has focused on establishing well
known brands in key locations in Central London. The group has grown to
encompass 15 hotels, 12 of which are branded. Splendid operates Holiday Inn,
Express by Holiday Inn, Comfort Inn and Best Western.

• Stay Investments Ltd was formed in 2005 as a Joint Venture between
Louis Woodcock and BDL, a long with other partners.   Louis Woodcock is founder
and MD of BDL Ltd.  BDL Ltd is a current franchisee of InterContinental Hotels
Group with 17 hotels including Crowne Plaza, Holiday Inn and Express by Holiday
Inn.


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For further information please contact:


Investor Relations (Gavin Flynn/Paul Edgecliffe-Johnson)  [phone]

Media Enquiries (Leslie McGibbon)                         [phone]



InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG
(ADRs)) is the world's most global hotel company and the largest by number of
rooms.  InterContinental Hotels Group owns, manages, leases or franchises,
through various subsidiaries, more than 3,500 hotels and 534,000 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
controlling interest in Britvic, the second largest soft drinks manufacturer in
the UK.



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.




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