IHG Unveils India Growth Strategy for Continued Expansion

Robust Development Pipeline of 20 Hotels Over Next Four Years

New Delhi / Gurgaon, September 17, 2008 - IHG (InterContinental Hotels Group), one of the world's largest hotel groups by number of rooms, today announced its India development strategy aimed at continued expansion and growth momentum. This sets in place a robust development pipeline of 20 new hotels over the next four years across its three brands - InterContinental^® Hotels & Resorts, Crowne Plaza^® Hotels & Resorts and Holiday Inn^® Hotels & Resorts.

IHG has a current portfolio of 13 hotels in major business and tourist hubs across the country.  Given the current development pipeline, IHG will add over 5,000 rooms to its current inventory of over 2,400 rooms.

Jan Smits, chief operating officer, Southern Asia & Korea, IHG said, "We view India as one of our priority markets and we already have extensive resources committed to and located in India.   Our strategy is to build a profitable portfolio of hotels in major metros and secondary cities where there are sufficient demand drivers to support internationally branded hotels.  We understand the Indian consumer needs based on our extensive research and we know we can deliver on them.  The strength and diversity of our brands will ensure that we address varying market segments ranging from the mid-tier to upscale business and leisure hotels".

Going forward, IHG will focus on managing its hotels and it will continue working with the existing franchisees.  IHG and The Grand Group have decided to discontinue their association when existing franchise agreements expire.  The franchising model was the only arrangement that was permitted to non-Indian hotel companies in the past.  IHG's franchised brands started operating in 1974.  The managed model ensures that brand standards and service quality are strongly delivered.   IHG would like to work with owners (and franchisees) who share the same passion for its brands and what they represent to guests.  

"We have achieved success with our managed hotels and this is visible and brings tangible business benefits through the delivery of brand and service quality standards.  The Crowne Plaza Today Gurgaon is the epitome of these standards and has already been recognised for them even though it opened as recently as 2007.  It has already won a number of awards," said Jan Smits.

Awards won by Crowne Plaza Today Gurgaon include:

• Best New Restaurant  - Times Food Guide Award, Wildfire
• Best New Business Hotel 2008 - Hospitality India Annual International Awards
• Best Business Hotel of Asia Pacific 2008 - PATWA (Pacific Area Travel Writers Association)
• India's Leading New Business Hotel - World Travel Award
• India's Emerging Business Hotel of 2008 - Today's Traveller Platinum Award

With rapid economic acceleration, strong GDP growth and the increasing influx of inbound arrivals and strong domestic potential, India is one of the fastest growing markets in Asia Pacific and a significant growth market for IHG.  According to the Indian Ministry of Tourism Report, in 2007 foreign tourist arrivals to India was 5.08 million while domestic travellers numbered 527 million.

Media Contacts:  

Sheo S. Rai

IHG Asia Pacific

+65 6395 6074 

[email protected]

Pranav Kumar

Ruder Finn Asia

+91 9810077898

https://ihg.the-group.net/[email protected]

Notes to Editors:

InterContinental Hotels Group (IHG) [LON:IHG, NYSE:IHG (ADRs)] is the world’s largest hotel group by number of rooms. IHG owns, manages, leases or franchises, through various subsidiaries, over 4,000 hotels and more than 590,000 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® Hotels & Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites® and Hotel Indigo®, and also manages the world’s largest hotel loyalty programme, Priority Club® Rewards with over 39 million members worldwide.

IHG has more than 1,700 hotels in its development pipeline, which will create 150,000 jobs worldwide over the next few years.

InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales.

IHG offers information and online reservations for all its hotel brands at www.ihg.com and information for the Priority Club Rewards programme at www.priorityclub.com. For the latest news from IHG, visit our online Press Office at www.ihg.com/media