Signed letter of intent 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."