IHG today announces it has agreed to sell the InterContinental Hotel Paris to DABICAM SAS, a wholly owned affiliate of GIC Real Estate Pte Ltd, the real estate investment arm of the Government of Singapore Investment Corporation, for a price (before transaction costs) of €315 million in cash (approximately £214 million), €65 million (approximately £44 million) in excess of net book value).

The transaction is expected to complete in the fourth quarter of 2005, at which point the hotel (438 rooms) will exit the IHG system.

The transaction may be subject to shareholder approval, if required.

IHG will continue to own its flagship InterContinental in Paris, the 477 room InterContinental Le Grand, which has been recently refurbished.

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

"In line with our strategy, this sale further reduces the capital IHG has invested in real estate and with the presence of the flagship InterContinental Le Grand Paris the Group retains excellent distribution in this key city."

Transaction details

• The transaction has been effected by the sale of shares in Hotel Inter-Continental Paris SAS, the legal entity which owns the InterContinental Paris.
• Proceeds received from the transaction will be used for general corporate purposes. The disposal is a continuance of IHG's strategy of reducing the capital invested in its business.
• No cash tax is expected to be payable as a result of the transaction in 2005.Since Separation in April 2003, including today's announcement, IHG will have sold or agreed to sell 139 hotels with proceeds of approximately £2.2 billion. Five properties remain on the market.