InterContinental Hotels Group PLC (IHG) today announces it has sold 16
Staybridge Suites' hotels in the United States to Hospitality Properties
Trust (HPT) for $185 million in cash.

As part of the transaction these hotels continue to operate within the Staybridge Suites' brand, IHG having entered into a management agreement on these hotels with HPT for a period of 20 years with options to extend. The amount paid by HPT is over $15 million more than the book value of the assets and the sale will not have a material effect on earnings in the year to December 2003.

Commenting on the transaction Richard North, Chief Executive, InterContinental Hotels Group said:

"We have successfully developed and grown the Staybridge Suites' brand over
the last five years and it now has critical mass in the upscale extended
stay segment. As a consequence, we no longer need to own these assets. The
deal is consistent with our strategy to prove brand concepts and then
reduce capital intensity whilst converting the income stream into
management or franchise fees. HPT is one of the strongest and most
respected real estate investment trusts in the market and we are delighted
to be working in partnership with them"

Richard Solomons, Finance Director, InterContinental Hotels Group said:

"The Staybridge Suites' brand is making good progress with 55 hotels open
and over 40 in the pipeline. This transaction is a direct consequence of
the continuing review of our asset base and represents a step along the
path to improving the group's return on capital."