Intercontinental Hotels Group (IHG)

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.