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InterContinental Hotels Group PLC Sells Nine Hotels in Australia and New
Zealand to Eureka Funds Management Ltd for £164 million in Cash

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Singapore, 1 September 2005   InterContinental Hotels Group PLC ( IHG ) today announced it has sold nine hotels in Australia and New Zealand to Eureka Funds Management Ltd ( Eureka ), for A$390 million (£164 million) in cash (before transaction costs), above the net book value of A$315 million (£133 million). 

IHG has also sold a further hotel, Holiday Inn Suva to FNPF Investment Limited (FIL), the wholly-owned subsidiary of the Fiji National Provident Fund ( FNPF ) for A$15 million (£6 million) in cash, bringing the total sale price of the ten hotels to A$405 million (170 million). 
IHG will continue to manage the hotels for Eureka and FNPF under ten year management contracts, each with an option to extend for ten further years at IHG s discretion. Management fees in the first full year are expected to be ca. US$4 million. 

The transactions are expected to complete in the fourth quarter of 2005. Proceeds will be used for general corporate purposes. 

The ten hotels (2,310 rooms) were placed on the market in April 2005 as part of IHG s continuing asset disposal programme. They consist of InterContinental Wellington in New Zealand, three Crowne Plaza hotels in Australia, five Holiday Inn hotels in Australia and Holiday Inn Suva in Fiji. 
 
Demand for the portfolio was high, and resulted in transaction terms beyond our initial expectations. The fact that this has been achieved with long term management contracts in place is testament to the quality of the assets and the attraction of InterContinental Hotels Group s brands and management skills to the hotel investment community,  said Tony South, SVP Development, IHG Asia Pacific. 

Patrick Imbardelli, IHG Managing Director Asia Pacific commented:  We are delighted to be establishing long term relationships with business partners of the calibre of Eureka and FNPF. They join a growing group of leading investors world wide, which have demonstrated their faith in InterContinental Hotels Group brands and expertise.  

Bob Kelly, Managing Director of Eureka, which is a property fund manager that focuses exclusively on Australian pension funds, stated:  The transaction reflects the increased acceptance of the hotel sector by its institutional investors.  

Kumar Kalyanakumar, Director of Eureka added:  This transaction cements what will be a strong relationship with InterContinental Hotels Group. The brand diversity, locational spread and strong business foundation which have been laid by the Group through its ownership and management over the years were the key attractions of the portfolio of hotels to Eureka.  

Olota Rokovunisei, CEO of FNPF said that he sees the association with IHG as a significant strategic partnership. 
 
We are delighted that IHG will continue to provide its management services in the operation of Holiday Inn Suva. This new acquisition is a progressive step to eventually establishing a cluster arrangement where IHG will manage a group of hotels for FNPF in Fiji. This strategy brings tremendous advantages to both parties.  

The sales announced today include 10 hotels and 2,310 rooms, namely: 

  • InterContinental Wellington, New Zealand 231 
  • Crowne Plaza Canberra 295 
  • Crowne Plaza Coogee Beach 207 
  • Crowne Plaza Terrigal 196 
  • Holiday Inn Melbourne 383 
  • Holiday Inn on Flinders, Melbourne 200 
  • Holiday Inn City Centre Perth 181 
  • Holiday Inn Potts Point 288 
  • Holiday Inn Townsville 199 
  • Holiday Inn Suva 130 


InterContinental Hotels Group PLC of the United Kingdom [LON:IHG, NYSE:IHG (ADRs)] is the world s largest hotel group by number of rooms. InterContinental Hotels Group owns, manages, leases or franchises, through various subsidiaries, more than [3,500] hotels and [535,000] guest rooms in nearly 100 countries and territories around the world. 
 

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Contact:

 InterContinental Hotels Group PLC
Leslie McGibbon
+44 (0) 1753 410 425 
 

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Also See: InterContinental Hotels Group Plans To Dispose of Ten Wholly Owned Properties in Australia, New Zealand and Fiji / April 2005
Patrick Imbardelli, InterContinental Hotel Groupís Managing Director for Asia Pacific, is ĎDivorcingí Owners Who Donít Fit In with the Groupís Values / Steve Shellum HOTEL Asia Pacific / November 2003


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