InterContinental has announced its plans to expand into
Libya, following the signing of a letter of intent between IHG and Magna
Holdings Limited.  The letter outlines IHG’s intention to enter this country for the first time
with the development of a newly built InterContinental hotel in Tripoli,
Libya’s capital.  Scheduled to open in early 2009, The InterContinental
Tripoli will provide premier accommodation for both business and leisure
travellers. 

The InterContinental Tripoli will be located in the city centre along the
cornice near the Green Square.  It will offer 300 luxury guest rooms, 26
serviced apartments along with an adjacent 300,000 sq foot grade A office
tower and 120,000 sq foot retail mall.

Included within the signed letter is an agreement that IHG will operate the
historic 1930s Al Waddan hotel on an unbranded basis.  This historic hotel
located next to the InterContinental Tripoli site is currently undergoing a
renovation and is set to reopen in early 2007. 

IHG will bring its global hotel management expertise to help train the
Libyan employees at the Al Waddan hotel.  This will also help to build and
establish IHG’s hotel management services in Libya in time for the opening
of the InterContinental Tripoli.

Libya until recently has not been a tourist destination, but this is now
beginning to change.  The country boasts a wealth of archaeological sites
and classical heritage, including five world heritage sites, such as Leptis
Magna, one of the finest Roman sites in the Mediterranean, and the ancient
desert oasis town of Ghadames.  It is also an ideal base to explore the
world’s largest desert with an excursion into the Sahara.  Business
travellers, primarily those working within the oil industry, are also
continuing to increase.

Chris Moloney, Chief Operating Officer for InterContinental Hotels Group,
MEA commented: “We are pleased to announce our plans to expand into Libya
for the first time.  We look forward to bringing our InterContinental brand
and global hotel management experience to this burgeoning business and
leisure destination.  It is another step towards achieving IHG’s goal of
adding 50,000 to 60,000 rooms on a net and organic basis globally across all
our brands by the end of 2008.”

Nabil Naaman, Chief Executive Officer of Magna Holdings Limited, said:  “We
are delighted with our relationship with InterContinental Hotels Group and
believe this will position Magna Holdings Limited in a favourable position
to operate successfully in the Libyan tourism sector. This strategic
relationship with InterContinental Hotels Group also confirms our pioneering
investment strategy and faith in the bright future of Libya. “
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