IHG Markets GBP500m of hotels

InterContinental Hotels Group PLC
12 July 2004

12 July 2004





INTERCONTINENTAL HOTELS GROUP PLACES A FURTHER £500M OF HOTELS ON THE MARKET FOR
                                    DISPOSAL



InterContinental Hotels Group PLC ("IHG") announces that it has today placed the
next tranche of hotels on the market with a net book value of approximately
£500m. This is in line with the statement in IHG's first quarter results
announcement on 27 May 2004 that as part of the continuation of its strategy of
continuing to grow its management and franchise businesses and reducing asset
ownership, it intended to dispose of approximately a further £500m of hotel
assets.



The hotels earmarked for disposal are predominantly in North America and include
the InterContinental hotels in Miami and Chicago as well as other
InterContinentals and hotels under the Crowne Plaza and Holiday Inn brands.



These hotels are expected to generate approximately £15m of EBIT and £39m of
EBITDA in 2004 and the intention is to retain management contracts. Hotels will
only be sold providing satisfactory prices are achieved.



In addition to the hotels placed on the market today, IHG continues actively to
progress the sale of the £129m of hotels highlighted in the May 27 announcement.
Of these, the Group has completed the sale of two hotels with proceeds of more
than £17m - the Holiday Inn, Gatwick, UK and the Holiday Inn , Adelaide,
Australia.



Therefore, since demerger in April 2003 IHG has now sold a total of 28 hotels
generating proceeds of more than £320m, with aggregate proceeds above net book
value. Today's announcement takes the total net book value of hotels sold or
being actively marketed to almost £1bn.



An update on progress, potential further disposals and return of capital to
shareholders will be provided at IHG's interim results presentation on September
9 2004. To date IHG has purchased £138m of shares as part of the current £250m
buyback programme. This equates to approximately 27 million shares at an average
price of around 512p.



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



"Today's announcement is a further step in the execution of our strategy of
reducing the capital intensity of the business and enhancing return on capital.
We will continue to grow our already large managed and franchise businesses by
capitalising on the strength of our brands and proven franchise and hotel
management skills."






Appendix 1: Summary detail of disposals and properties for sale to date (since
demerger)





Sold to date: 28 hotels (4146 rooms), sale proceeds of £323m



IC Mayfair, UK                              289 rooms
IC Central Park South, USA                  208 rooms
CP Midland Manchester, UK                   303 rooms
CP Vanuatu, Vanuatu                         140 rooms
HI South Bend, USA                          229 rooms
HI Sheffield West, UK                       138 rooms
HI Middlesborough/Teeside, UK               134 rooms
HI Gatwick Crawley, UK                      217 rooms
HI Newcastle, Aus                            72 rooms
HI Adelaide, Aus                            193 rooms
HI Darwin, Aus                              183 rooms
Posthouse Epping, UK                         79 rooms
16 Staybridge Suites, USA                   1961rooms



Currently on market: 13 hotels, net book value of £110m

Comprising: IC Edinburgh, CP United Nations, New York , 11 others

New to market today: 20 hotels, net book value £512m

Comprising: IC Miami, IC Chicago, 18 other hotels

Total number of hotels disposed and for sale: 61 hotels, £945m net book value



For further information, please contact:


Gavin Flynn, Investor Relations             [phone]
Dee Cayhill, Corporate Affairs              [phone]



NOTES TO EDITORS



INTERCONTINENTAL HOTELS GROUP PLC



InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG
(ADRs)) is the largest hotel company by number of rooms.  InterContinental
Hotels Group owns, manages, leases or franchises, through various subsidiaries,
more than 3,500 hotels and 538,000 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(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 Indigo(R), 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 Holiday Inn Express hotels,
www.staybridge.com for Staybridge Suites by Holiday Inn hotels,  and
www.candlewoodsuites.com for Candlewood Suites, 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.










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