InterContinental Acquires Candlewood Suites

InterContinental Hotels Group (IHG), the world`s most global hotel
company, announces that as of December 31, 2003, it has acquired the
Candlewood Suites brand, through its affiliate Six Continents Hotels,
Inc., and increased its management portfolio by more than 40% in the
Americas. This addition brings the total number of IHG brands to six, and
the number of owned, managed, leased and franchised properties (through
various affiliates) to more than 3,400 hotels and 527,500 guest rooms in
nearly 100 countries and territories around the world.

“We are very pleased with this acquisition because it is consistent with
our long-term strategy to prove and deliver winning brand concepts, while
reducing our capital exposure in real estate assets and growing our
revenue stream from management and franchise fees,” says Steve Porter,
president for the Americas, InterContinental Hotels Group. “And, it allows
us to expand our industry supply share in a segment where we have
experience and dominance—the mid-price market—with good quality
assets, that significantly grow our room and hotel supply share virtually

All Candlewood Suites properties are purpose-built, and are on average
less than five years old. The addition of this new brand to the IHG
portfolio also means the group now has representation in both the midscale
extended stay segment, as well as the upscale extended stay segment with
their Staybridge Suites offering.

This two-part transaction involved three parties: IHG, Candlewood Hotel
Corp. (CNDL) and Hospitality Properties Trust (HPT). IHG, through its
affiliate Six Continents Inc., acquired the Candlewood Suites brand for
$15.3 million in cash and its affiliate Holiday Hospitality Franchising,
Inc. will be the licensor on all current and future franchise agreements.
InterContinental Hotels Group Resources, Inc. entered into an agreement
with HPT, which owns 64 Candlewood Suites hotels and will purchase an
additional 12, to manage these 76 properties. The management agreement has
as initial term of 25 years with an option to extend. This addition is
expected to be earnings enhancing within the first year.

The success of IHG, provides a solid foundation to drive brand value—
with some of the strongest, most recognized brands in the industry:
InterContinental(R) Hotels and Resorts, Crowne Plaza(R) Hotels & Resorts,
Holiday Inn(R) Hotels and Resorts, Holiday Inn Express(R), Staybridge
Suites(R), and now Candlewood Suites(R).


IHG`s integrated marketing initiatives help unify all six brands so they
benefit and learn from each other`s efforts—while keeping the brands
distinct and differentiated to their customer segments. IHG does this by
offering current and prospective franchisees access to a multi-brand
marketing platform comprised of its Enterprise Values—technology,
global reservations centers, global sales, performance support, and
Priority Club(R) Rewards.

InterContinental Hotels Group PLC of the United Kingdom
(LON: IHG)(ADRs), owns, manages, leases or franchises, through various
subsidiaries, more than 3,400 hotels and 527,500 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, Express by Holiday Inn, Staybridge Suites, and
Candlewood Suites.