InterContinental Hotels Group signs 4,500 rooms in landmark China deal

InterContinental Hotels Group signs 4,500 rooms in landmark China deal

February 15, 2006

Deal involves six hotels in Sichuan province
Further strengthens Group's market leadership in China

    CHENGDU, China, Feb. 15 /Xinhua-PRNewswire/ --
InterContinental Hotels Group, the world's largest hotel
group by number of rooms, today signed a landmark deal with
Chengdu International Exhibition & Convention Group to
manage six hotels in Chengdu and Jiuzhaigou in China's
Sichuan province.  This deal significant enhances the
group's market dominance in China.  The six hotels -- two
InterContinental properties, three Holiday Inn properties
and one Express by Holiday Inn -- comprise a total of more
than 4,500 rooms.

    This landmark signing in Sichuan, China's second most
populous province with over 90 million residents, marks a
significant addition to InterContinental Hotels Group's
already strong portfolio of about 50 hotels in Greater
China.  It puts the Group in a strong position to reach its
target of having 125 hotels open in China by 2008.

    Chengdu, the strategically-located capital of Sichuan
province, is both an emerging powerhouse and a popular
tourism destination.  It is a fast-developing city that has
been named as one of the most livable cities China in and is
one of the top-ranked cities for tourism and economic
potential. 

    The Jiuzhaigou Scenic Area, a 45-minute flight from
Chengdu, is known for its pristine beauty, with emerald
lakes, layered waterfalls, colourful forests, snow peaks
and Tibetan folk villages.  The area is listed as a UNESCO
(United Nations Educational, Scientific and Cultural
Organization) World Natural Heritage site.   

    Andrew Cosslett, Chief Executive, IHG, who was in
Chengdu for the signing, said: "This is the biggest
single deal IHG has done in China, a country that lies at
the heart of our growth strategy.  Our brands have a strong
foothold in Asia Pacific and Holiday Inn was one of the
first international hotel brands to establish a presence
there in 1984.  This deal marks a major milestone as we
move towards meeting our aggressive growth plans and we
remain fully committed to maintaining our position as the
leading hotel company in China." 

    Edmond Ip, InterContinental Hotels Group's chief
operating officer for North Asia, said: "This latest
deal is concrete proof that InterContinental Hotels Group
is indeed the hotel partner of choice.  Our growing
portfolio clearly demonstrates that our partners recognise
the value of our award-winning brands and have complete
confidence in our ability to deliver memorable guest
experiences coupled with exceptional business
performance."

    "We are pleased to cooperate with an experienced,
international hotel operator like the InterContinental
Hotels Group on this significant project.  Our partnership
with InterContinental Hotels Group combines their
world-recognized hotel brands and established operating
systems with our local market knowledge and property
portfolio.  We believe that this cooperation will also
contribute to bringing Chengdu and Western China into
sharper focus with the international business
community," commented Deng Hong, Chairman of Chengdu
Exhibition & Convention Group. 

    The scheduled openings will comprise the following
hotels:

    In Chengdu City, as part of the RMB 5 billion (US$620
million) New Century City international convention and
exhibition centre, incorporating shopping, entertainment,
offices, residences and a golf course:

    InterContinental Century City Chengdu, an upscale
business hotel that will combine the latest communication
and business technologies, high-end food and beverage
options and conference facilities.  Scheduled to open in
2007.

    The two Holiday Inn hotels at the Chengdu Century City
New Convention & Exhibition Center are mid-scale hotels
offering quality accommodation and business support
services, specifically designed to host convention
delegates.  Scheduled to open in 2006.

    At the Jiuzhaigou Scenic Area, as part of Jiuzhai
Paradise, hailed as the `Davos of China':

    InterContinental Resort Jiuzhai Paradise, an upscale
hotel with eight F&B outlets and extensive conference
and recreational facilities.  Scheduled to open in 2006.

    Holiday Inn Jiuzhai Jarpo, a mid-scale hotel business
services and spa facilities.  Scheduled to open in 2006.

    Express by Holiday Inn Jiuzhai Jarpo, a
convenience-sector hotel scheduled to open in 2007.

    Chengdu International Exhibition & Convention Group
has interests in exhibitions and conventions, hotels, travel
agencies and real estate.  The Group commands more than 70%
market share for exhibitions and conventions in Chengdu and
had total revenues of RMB2.2 billion (US$265 million) in
2005.  The first stage of the New Century City project in
Chengdu is scheduled for completion by end of 2006. 

    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, almost 3,600 hotels and 539,000 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.

    Asia Pacific is the fastest growing region for
InterContinental Hotels Group worldwide.  The Group's
portfolio in this region includes more than 160 hotels and
over 44,000 guest rooms under the InterContinental(R)
Hotels & Resorts, Crowne Plaza(R) Hotels & Resorts,
Holiday Inn(R) Hotels and Resorts, and Express by Holiday
Inn(R) brands.

    InterContinental Hotels Group offers information and
online reservations for all its hotel brands at
http://www.ichotelsgroup.com and information for the
Priority Club Rewards programme at
http://www.priorityclub.com .

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

    For further press information and photos, please
contact:

     Sharona Tao
     Brand Public Relations & Communications Manager,
Greater China
     InterContinental Hotels Group
     Tel:   [phone]
     Fax:   [phone]
     Email: [e-mail]

SOURCE  InterContinental Hotels Group