InterContinental Hotels Group PLC announces the signing of a new franchise
agreement for up to 16 hotels in the UK owned by Queens Moat Houses Limited.
Initially 11 of the hotels will be converted to the Holiday Inn brand and two to the
Crowne Plaza brand. Three further hotels may be converted at a later date.The initial 13 hotels, managed by Queens Moat Houses UK Limited, will undergo
significant refurbishment as part of the deal and will be operated under a 20 year
franchise agreement. These additions will bring the total number of hotels operating
under IHG brands in the UK to 227 (31,909 rooms).

Andrew Cosslett, Chief Executive Officer of InterContinental Hotels Group, commented:

“This deal is another important step in the development of our brand portfolio in
the UK market. We continue to add to our franchise business and are delighted to be
furthering our relationship with Queens Moat Houses.”

Richard Moore, Managing Director of Queens Moat Houses UK Limited, added:

“The decision to franchise an important part of the portfolio in the UK is part of a
new corporate strategy for the Group since Queens Moat Houses was acquired in
October 2004. Strong global hotel brands, combined with new capital investment in
our hotels will provide us with an excellent base for growth in the future.”
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