Hotel Indigo(TM) Unveils a New Build Design Concept and Future Development Plans; Announcement Marks One-Year Anniversary of the First Lifestyle Boutique Hotel.

ATLANTA -- InterContinental Hotels Group (LON: IHG) (NYSE: IHG) (ADRs), the world's largest and most global hotel company, today announces the launch of a new build design concept for Hotel Indigo, the industry's first lifestyle boutique brand. This announcement marks the one-year anniversary of Hotel Indigo, and is part of a larger growth and development strategy for the brand.

"The introduction of our new build design concept is driven by developer demand," said Jim Anhut, senior vice president, brand development for the Americas, InterContinental Hotels Group (IHG). "While conversions will be the primary method for the brand's expansion, the new build design concept will satisfy developer demand to build Hotel Indigo properties in suburban, near 'urban' locations where conversions are not an option. This inspiring interest in the brand underscores the momentum that Hotel Indigo continues to gain within the hotel franchise community because of its unique point of difference in the marketplace," said Anhut.

Hotel Indigo's new build design offering, provides prospective developers a distinctive yet flexible concept that can readily fit into a variety of marketplaces. The new build design unfolds into an intricate story that moves beyond environmental aesthetics, allowing Hotel Indigo to inspire its guests. This is expressed via the timeless beauty found in nature and realized through the Golden Mean. Hotel Indigo's new build concept uses design elements that tell the story of the brand, some of them are: non-static exterior renewable mural, open and airy public spaces designed for contemplation or congregating, and guestrooms with curved walls and distinctive entry way alcoves.

As a complement to the brand's evolving exterior footprint, Hotel Indigo has also created "Interpret Indigo." Interpret Indigo is the brand's custom interior design mantra, which gives developers and their designers the opportunity to creatively interpret the brand design hallmarks so that each property can maintain distinct character and regional flair. While the new build design concept and "Interpret Indigo" both keep the Hotel Indigo brand hallmarks at the forefront, they also allow the brand to maintain a unique personality and simultaneously deliver on its brand promise of non-cookie cutter hotels.

As the first lifestyle boutique brand in the hospitality industry, Hotel Indigo has defined a new category of hotels and is first to market with a product and service model that addresses the needs of consumers who are "trading up" to affordable luxury and service, but who are still seeking value and style. Hotel Indigo has experienced unparalleled reception from consumers and developers alike. Hotels have already opened in high-profile urban markets including Atlanta and Chicago. Before years end, another Hotel Indigo hotel will open in Palatine, Ill bringing the brand portfolio to three hotels open in just over a year.

"The introduction of this new build concept and a strong pipeline, combined with the strength and scope of the IHG infrastructure provides a strong foundation for the continued growth and development of Hotel Indigo," said Anhut. "Hotel Indigo has experienced an exceptional year and our open hotels continue to post strong performance numbers and high satisfaction marks from consumers. And, on the one year anniversary of the brand, we already have eight hotels opened, under conversion or signed. Based on this year's success we fully expect to have twelve to fifteen Hotel Indigo hotels open by end of 2006."

Already well positioned for expansion in 2006, Hotel Indigo currently has four signed license agreements with two prominent hotel development groups. Driftwood Hospitality will own and manage the Hotel Indigo Houston, TX, while Wesley Hotel Group, LLC will own and Wesley Hotels & Resorts will manage Hotel Indigo properties in Nashville, Tenn., Knoxville, Tenn., and Sarasota, Fla. A fifth conversion is also underway in Dallas, TX.

"We are pleased to add three premiere properties to the Hotel Indigo portfolio," said Wayne W. McAteer, Chairman and CEO for Wesley Hotel Group, LLC. "Conversion work has already begun on our Knoxville and Nashville properties and our Sarasota hotel is on track to open in the summer of next year. Hotel Indigo will fit well within all of these markets and create an inimitable and superior hospitality experience for travelers."

In addition to signed agreements, franchise negotiations are currently underway in more than 25 additional major metropolitan markets from California to New York. In fact, IHG recently committed to investing capital to own and develop 2-3 hotels over the next five years to expedite Hotel Indigo's distribution and penetration into key markets.

For more information on Hotel Indigo, please visit www.hotelindigo.com.

About Hotel Indigo

The seventh member of the InterContinental Hotels Group family, Hotel Indigo has defined a new category of hotels and is first to market with a product and service model that addresses the needs of consumers who are "trading up" to affordable luxury and service, but who are still seeking value and style. Following a retail-inspired design and service concept, Hotel Indigo seeks to revolutionize the travel and hospitality industry by creating a new segment of hotels that are totally focused on the customer and helping guests create an experience in an environment suited to their own lifestyle. A brand developed primarily for conversions, Hotel Indigo is designed to fit a variety of markets in locations where a hotel might not be reaching its full potential, but is poised for success post conversion.

Based on the timeless beauty found in nature and realized through the Golden Mean (also known as the Fibonacci series or Phi), the design and decor of Hotel Indigo creates a warm welcoming environment for guests. From the nautilus shell logo - a symbol of perfect proportion and natural beauty - to the deliberate design of the lobby chairs and guest room furnishings, the architectural concept creates a relaxing atmosphere of order and balance.

Note to Editors:

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 over 537,000 guest rooms in nearly 100 countries and territories around the world. The Group owns a portfolio of well recognized and respected hotel brands including InterContinental(R) Hotels & Resorts, Crowne Plaza(R) Hotels & Resorts, Holiday Inn(R) Hotels and Resorts, Holiday Inn Express(R), Staybridge Suites(R), Candlewood Suites(R) and Hotel Indigo(TM), and also manages the world's largest hotel loyalty program, Priority Club(R) Rewards, with over 26 million members worldwide. In addition to this, InterContinental Hotels Group has a 47.5% interest in Britvic, one of the two leading manufacturers of soft drinks, by value and volume, in Great Britain.

InterContinental Hotels Group offers information and online reservations for all its hotel brands at www.ichotelsgroup.com and information for the Priority Club Rewards program at www.priorityclub.com.

For the latest news from InterContinental Hotels Group, visit our online Press Office at www.ihgplc.com/media.