Intercontinental Hotels Group Expands U.s. Upscale Presence

New InterContinental Hotels & Resorts Property to Open in Kansas City, Mo.

ATLANTA (Wednesday, December 21, 2005) - InterContinental Hotels Group (IHG) [LON: IHG; NYSE: IHG (ADRs)], the world’s largest hotel group by number of rooms, plans to open its latest InterContinental Hotels & Resorts property in Kansas City, Mo.


Located in the prestigious Country Club Plaza area, the new InterContinental Kansas City at the Plaza is just steps away from the city’s popular entertainment district which boasts an outdoor museum of Spanish architecture and European art, more than 180 stores and boutiques and an eclectic mix of over two dozen restaurants. Also nearby is the Kansas City Convention Center and Nelson Atkins Museum of Art.


“Global growth of the InterContinental brand is a top priority for IHG,” said Steve Porter, president, The Americas, InterContinental Hotels Group. “Specifically, there is a real opportunity to grow the InterContinental brand in the U.S. and the InterContinental Kansas City at the Plaza is a tremendous and welcome addition to our portfolio of hotels.”


The hotel is being converted from the AAA Four Diamond Fairmont Kansas City at the Plaza, which is consistently rated as Kansas City’s best hotel. It will open as the InterContinental Kansas City at the Plaza in January 2006. Upgrades to the property, including room renovations, will take place during 2006 and 2007.


Located at 401 Ward Parkway, the 14-story high-rise includes 366 guestrooms and nearly 30,000 square feet of meeting and function space. Hotel amenities include:

Balconies for all guest rooms
20 one-bedroom suites
Exclusive Club InterContinental lounge with food and beverage served throughout the day
Fitness center including three spa treatment rooms
Outdoor swimming pool
The lobby-level Oak Bar
The Oak Room, a fine dining restaurant overlooking Country Club Plaza

The property will be owned and managed by The Procaccianti Group (TPG), under a license agreement with a company in the InterContinental Hotels Group. Operating for nearly 50 years, The Procaccianti Group, (www.procgroup.com), is a full-service, privately owned, real estate company that acquires, manages and renovates upscale, upper-upscale and luxury hotels.


“We are pleased to become the owners of this premiere hotel,” said James A. Procaccianti, President and CEO of TPG. “With world-class properties in Tulsa, Oklahoma City, Chicago, and now Kansas City, we are solidifying our presence in the central part of the US. We expect this outstanding property to attract business and leisure travelers from many of the region’s largest cities like St Louis, Omaha, and Memphis."


“The Procaccianti Group has a strong track record of success with owning and operating upscale properties,” said Kirk Kinsell, SVP and chief development officer, The Americas, InterContinental Hotels Group. “The InterContinental Kansas City at the Plaza will be a world-class property and we are confident that TPG will maintain the highest standards of excellence in delivering upon the InterContinental experience.”


Reflecting InterContinental Hotels Group’s strategy to grow the InterContinental brand through management contracts and selective franchising rather than company-owned locations, the InterContinental Kansas City at the Plaza is the first executed franchise agreement for the InterContinental brand since announcing a selective franchising program.


“We are pleased to be expanding our franchising program in the U.S.,” said Kinsell. “In the Americas region, we offer a wealth of knowledge and experience in this area with nearly half of our hotels in South America and Mexico operating under franchise agreements.”


InterContinental Hotels & Resorts continues to grow its presence in the Americas region. Most recently, the company’s flagship hotel, the InterContinental Buckhead, opened in Atlanta and the InterContinental Merida opened in Mexico. By the end of 2005, the InterContinental Playa Bonita Resort & Spa in Panama will join the portfolio. And, currently under construction are the InterContinental Boston, scheduled to open in Fall 2006 and the InterContinental San Francisco, scheduled to open in late 2007. Construction of a new InterContinental in Sacramento is scheduled to begin in January 2006.


InterContinental Hotels & Resorts was the first truly international hotel brand in the world, and quickly became the symbol of glamour, sophistication and success that years later, continue to define global travel. The brand is committed to providing its guests with memorable and unique experiences that enrich their lives and broaden their outlook. InterContinental offers services and amenities specifically designed for the international business traveler, while maintaining the delicate balance of luxury expectations with authentic local experiences that enhance the leisure stay as well. InterContinental is located in more than 60 countries, operating 136 hotels worldwide and 45 hotels in the Americas region. The brand continues to expand in key destinations around the globe. For reservations, visit www.intercontinental.com or call 1-800-IC-HOTELS.

Contact:

Stephanie Yudin, InterContinental Hotels & Resorts, stephanie.yudin@ichotelsgroup.com, 770.604.5083

About The Procaccianti Group:

Operating for nearly 50 years, The Procaccianti Group, (www.procgroup.com), is a full-service, privately owned, real estate company that acquires, manages and renovates upscale, upper-upscale and luxury hotels.. The award-winning company is engaged in hotel and commercial property acquisitions, property management, hotel construction and design. TPG, which has been recognized by major franchisors for its leading hotels, is involved in all aspects of the hotel industry, from finance sourcing, construction and design, to ownership and management. The Cranston, Rhode Island-based company owns and manages 34 hotels comprising nearly 8,000 rooms, as well as more than half a million square feet of meeting and conference space.

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® Hotels & Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites® and Hotel IndigoTM, and also manages the world's largest hotel loyalty programme, Priority Club® Rewards, with over 27 million members worldwide.

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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