InterContinental London May Fair hotel sold!
Friday, 22nd August 2003
Source : InterContinental Hotels Group
InterContinental Hotels Group PLC - Sale of London May Fair Hotel Limited
to Radisson Edwardian Hotels for £115 million

InterContinental Hotels Group PLC (IHG) today announces that it has
exchanged contracts for the sale of London May Fair Hotel Limited, the
holding company for the InterContinental May Fair London, to Radisson
Edwardian Hotels for £115 million in cash. The transaction is expected to
complete on or before 11 September 2003 and represents a small discount to
book value, which includes the costs associated with the cancelled
refurbishment of the property. The sale will not have a material effect on
earnings in the year to December 2003.

The price represents an EBITDA multiple of 16.7 times 2002 earnings and
nearly £400,000 per room. In addition, IHG will no longer have to incur the
substantial capital expenditure needed to refurbish the hotel.

Following the sale, the InterContinental brand will continue to have a
strong presence in London with the owned flagship hotel on Hyde Park
Corner - the InterContinental London, and the managed property on Portman
Square - the InterContinental Churchill London.

Commenting on the transaction Richard North, Chief Executive, IHG said:

"We have clearly expressed our strategy of driving enhanced returns through
reducing capital intensity. We are therefore in the process of selling
hotels that we do not need to own, providing we can achieve fair value. The
sale of the InterContinental May Fair meets both these tests and is another
example of the successful execution of this strategy."
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