InterContinentalHotels Group

2

IHG vs. its Main CompetitorsR

oom

s ne

twor

k as

of e

nd o

f yea

r, 20

10

Source : Companies annual reports except for Hilton network, Accor internal data

88%

86%

85%

83%

68%

61%

56% 28%

Worldwide excluding the US

208 Kr

366Kr

In ‘000 rooms

EMEA Americas

IHG first hotel operator worldwide

1st

647

613

605

~600

507

495

302

Network

13%19%

8% 9%

8%7%

10% 4%

16%

7%5%

20%19%

Roo

ms

pipe

line

as o

f end

of y

ear,

2010

In ‘000 roomsPipeline

Slight decrease in most of the pipelines, IHG keeping the highest one

205

103

105

138

101

51

85

NB: Figures include traditional lodging and extended stay units but exclude timeshare products

APACVs

end 2009

-3%

-5%

+5%

+6%

0%

-24%

0%

(2)

(2) Hilton pipeline based on an internal press release, January 2011(1) Hilton geographical breakdown based on 2009 figures

(1)

Pipeline

33

InterContinental Hotels GroupSummary

1. Company overview Slide 4

2. Company organization Slide 5

3. Brand positioning Slide 6

4. Geographical breakdown Slide 7

5. Room portfolio Slide 8

6. Operating mode Slide 9

7. Group strategy Slide 11

8. Pipeline and lodging development Slide 13

9. Key figures Slide 16

10. SWOT analysis Slide 19

11. Company history Slide 20

12. Brands description Slide 21

InterContinental – Company profileFY 2010

4

1. Company overview

– With brands such as Holiday Inn dating back to the 1950s, Intercontinental Hotel Group (IHG) was formed by the separation of Six Continents on April 2003

– With 4,437 hotels and 647,161 rooms in over 100 countries, IHG is the largest hotel group worldwide

– IHG operates 7 brands in the traditional lodging industry and the extended stay segment, from economy to luxury

– Economy: Express by Holiday Inn, Candlewood Suites– Midscale: Holiday Inn, Hotel Indigo – Luxury: Intercontinental, Crowne Plaza and StayBridge

– Since 2003, IHG has moved to an asset light model, with a focus on franchise and management

– Only 15 owned hotels worldwide– Asset sale program £2.9bn worth since 2003

– 335,000 employees

Description

Main FiguresRevenue

Sources: Reuters as of April 26, 2011, GoogleFinance, Company

Main Shareholders

Listed on the NYSE and the London Stock Exchange

Americas EMEAAPAC Central

InterContinental – Company profileFY 2010

Owners Stake

Float 99,0%

JP Morgan Asset Management 5,03%Cedar Rock Capital 5,02%

Southeastern Asset Management 4,95%Fidelity International Limited 4,78%

2009 2010 2011E 2012EFinancials ($m)

Revenue 1,538 1,628 1,736 1,858% Change in Revenue 5.9% 6.6% 7.0%

EBITDA 492 552 623 696EBITDA margin 32.0% 33.9% 35.9% 37.5%

Net Profit 214 293 330 386Net margin 13.9% 18.0% 19.0% 20.8%

Market Data ($m)Market Cap 6,290

NetworkHotels 4,437Rooms 647,161

# rooms

Eco-Lux 4,437 647,161

# hotels

63.4% $106.04 $67.22ADROR RevPAR

segment

Segmental Revenue and Operating ProfitOperating Profit

-200

-100

0

100

200

300

400

500

Americas

EMEA APACCentralTotalGroup

55

2. Company organization

Award winning loyalty program

(Over 51m members worldwide)

Other activities Full & Limited service segment

Extended Stay segment

Hotel business

InterContinental – Company profileFY 2010

66

3. Brand positioning

LimitedService

FullService

ExtendedStay

171 h

388 h

1,241 h 38 h

2,075 h

188 h

288h

6 hMidscale(37% of room network)

Luxury upscale(29% of room network)

Economy(34% of room network)

InterContinental – Company profileFY 2010

77

4. Geographical breakdown

Americas

3,458 h439,375 r

68%

13%

Asia &Pacific

285h86,934 r

19%

Europe,Africa &Middle-East

694 h120,852 r

Hotel and room network4,437h. / 647,161r.

As of December, 31, 2010

Source: IHG report 2010

Economy

Luxury

MidscaleX%Share ofglobalnetwork

20%

44%

36%

55%36%

9%

43%

35%

22%

InterContinental – Company profileFY 2010

88

5. Room portfolio

H R R H R

Upscale & Luxury 559 164 584 294 162 43 052 76 193 132 45 339 50,1% 47,9%InterContinental H&R Luxury Sofitel 171 58 429 342 64 20 111 19 120 51 19 198 74,4% 20,0%

Crow ne Plaza Upscale Pullman 388 106 155 274 98 22 941 57 073 81 26 141 36,8% 63,2%

Midscale 1 285 234 665 183 327 53 055 151 829 105 29 781 22,0% 77,4%Holiday Inn H&R Ltd-Service Novotel 1 241 227 225 183 325 52 945 144 683 104 29 597 22,5% 77,0%Hotel Indigo Ltd-Service 38 4 548 120 2 110 4 254 1 184 13,0% 82,4%

Hi Club Vacations 6 2 892 482 2 892 0,0% 100,0%

Economic 2 075 191 228 92 198 23 706 159 867 30 7 655 4,2% 95,7%Holiday Inn Express Ltd-Service Ibis 2 075 191 228 92 198 23 706 159 867 30 7 655 4,2% 95,7%

Total Lodging 3 919 590 477 151 687 119 813 387 889 267 82 775 22,7% 75,1%

Extended Stay 518 56 684 109 7 1 039 51 486 18 4 159 36,1% 63,5%Staybridge Suites Upper-mid. Adagio 188 20 762 110 5 748 20 014 29,2% 69,7%

Candlew ood Suites Economic 288 28 253 98 28 253 33,0% 67,0%Other 42 7 669 183 2 291 3 219 18 4 159 66,4% 33,6%

Total 4 437 647 161 146 694 120 852 439 375 285 86 934 25,1% 74,1%Source : 2010 FY

3 458 0,8%

288 0,0%

22 0,0%

2 965 0,9%

493 0,4%183 1,1%

1 847 0,1%1 847 0,1%

812 0,6%35 4,6%

6 0,0%

853 0,6%

265 2,2%56 5,6%

209 0,0%

Europe Af. Mdle-East Americas Asia Pac. Ow ned & Leased

Mnged FchisedH

Geographical repartition Operating mode (% rooms)Breakdown

by brand CategoryACCORBrand Hotels Rooms

Hotel avSize

2009 2010 Change

Occupancy rate 59,8% 63,4% 3,6 ptsAverage Daily rate 102,2 106,0 3,7%RevPar 61,1 67,2 (10,0%)

InterContinental – Company profileFY 2010

99

6. Operating modeEvolution 2000-2010

Global network per operating mode(In room number)

Network 2000497,000 rooms

Network 2010647,161 rooms

FranchiseOwned & Leased Management

19%

6%

75%

+150,161 roomsor 30% over 9 years

Sources: IHG presentations and annual report

25%

1%

74%

InterContinental – Company profileFY 2010

15h

1010

6. Operating modePer region

Sources: IHG interim report

Europe, Africa & Middle-East120,852 rooms

Americas439,375 rooms

Asia & Pacific86,934 rooms

FranchiseOwned & Leased Management

Regional networks end of December 2010 per operating mode(In room number)

Americas and EAME clear focus on franchised hotelsAsia and Pacific mainly management contracts

10%1%

89%

33%

1%

66%

91%

1%

8%

InterContinental – Company profileFY 2010

2h4h9h

11

6. Operating modePer brand, 2010 FY

Source: IHG’s FY results 2010

Brand Hotels Rooms Ownership by brand

InterContinental 171 58,429

Crowne Plaza 388 106,155

Holiday Inn 1,241 227,225

Holiday Inn Express 2,075 191,228

Staybridge Suites 188 20,762

Candlewood Suites 288 28,253

Indigo 38 4,548

HI Club Vacations 6 2,892

Other 42 7,669

74%6% 20%O&LManagedFranchised

37% 63% O&LManagedFranchised

77%1% 22% O&LManagedFranchised

4% 96%O&LManagedFranchised

1% 29% 70%O&LManagedFranchised

33% 67%O&LManagedFranchised

5% 13% 82%O&LManagedFranchised

100%O&LManagedFranchised

66% 34%O&LManagedFranchised

InterContinental – Company profileFY 2010

O&L : 7h

O&L : 4h

O&L : 1h

O&L : 2h

O&L : 1h

1212

7. Group strategy

Over the last few years:

Network 2000

3,100 hotels497,000 rooms

Network 2010

4,400 hotels647,000 rooms

– +1,300 hotels and 150,000 rooms– Focus on the lodging industry– Strong acquisition policy– Worldwide and segment-diversified development– Brand value for customers

Sources: IHG presentations

Objectives “Making best use of our scale to build and grow preferred hotel brands for guests and

owners in high value markets”

ActionPlan

Target key markets Build powerful & distinct brands Implement best demand delivery systems Have and aligned and engaged organization, with reduced cost and increased efficiency Play on 3 levers: Rooms, RevPar, Royalty Rate

InterContinental – Company profileFY 2010

Conclusion

The most dynamic player with the biggest pipeline, capitalizing on its brands awareness to expand in growing markets

Strategy to penetrate massively Asia, and especially China, while continuing development in key European Countries (UK and Germany in particular)

Emerging globalization of Staybridge Suites and Indigo Hotels brands

7. Group strategyFocus on China

13InterContinental – Company profile

FY 2010

7. Group strategyFocus on India

14InterContinental – Company profile

FY 2010

7. Group strategyFocus on Middle East

15InterContinental – Company profile

FY 2010

1616

7. Group strategyZoom on 2010 key facts

Sources: IHG Group at a glance& FY2010 presentation

Crowne Plaza transformation :- 4th largest upscale brand worldwide, fastest growing upscale brand in Asia- IHG capital to strengthen distribution (key locations, iconic assets)- Quality drive (c. 40 hotel removals)- Refresh brand hallmarks- Drive brand awareness

Holiday Inn relaunch : - entire estate refreshed (90% Holiday Inn and HI Express now operating under the new

standards)- new brand extensions (Holiday Inn Club Vacations)- strengthen brand image and reputation (Olympics sponsorship)

InterContinental – Company profileFY 2010

Main facts:

7. Group strategyZoom on 2010 key facts

17InterContinental – Company profile

FY 2010

7. Group strategyZoom on 2010 key facts

18InterContinental – Company profile

FY 2010

1919

8. Pipeline and lodging developmentGeneral overview

Source: IHG 2010 FY

A development still focused on Americas and Holiday Inn & Holiday Inn Express

Development in previous year– In 2010, 35,744 rooms (259 hotels) were added, and 35,262 rooms (260 hotels) removed

Development plan as of 31.12.2010- 1,275 hotels (204,859 rooms) in pipeline- Hotel Indigo outside Americas : 3 hotels open, 16 hotels in the pipeline, 7 new markets

including Spain, Thailand, Hong Kong and Taipei- Holiday Inn Express in APAC : 18 hotels signings in 2010 taking pipeline to 40, market entry in

India, Japan, Malaysia, Singapore and Taipei

44%56%

Owned & leasedManagementFranchise

Group Pipeline by Operating Mode Group Pipeline by Region

15%

50%

35%

AmericasEMEAAPAC

Group Pipeline by Brand

4%5%

29%

27%

10%

20%

5%

Intercontinental Crowne PlazaHoliday Inn ExpressStaybridge Suites Candlewood SuitesIndigo

InterContinental – Company profileFY 2010

20

25 72623 117

9 359

822

326

11 565

5 325

24 962

37 011

9 826 10 506

5 458

2752902983441 230110

Americas890 hotels

102,509 rooms

1 669

5 930 5 3306 144

361128

3 798

1 072

6 395

325

283

20

8. Pipeline and lodging developmentPipeline at 31.12.2010 per region

Sources: IHG FY 2010

EMEA153 hotels

31,435 rooms

APAC232 hotels

70,915 rooms

Franchise

Mgt.

99% Mgt

Management

A development plan focused on Franchise and Midscale brands in Americas / Management and Upscale segment abroad

InterContinental – Company profileFY 2010

8. Pipeline and lodging developmentFocus on China

InterContinental – Company profileFY200921

8. Pipeline and lodging developmentFocus on India and Middle-East

InterContinental – Company profileFY200922

India Middle East

2323

8. Pipeline and lodging developmentPipeline at 31.12.2010 per brand

Source: IHG FY 2010 results presentation

60 hotels19,374 rooms

313 hotels57,505 rooms

123 hotels38,994 rooms

494 hotels57,505 rooms

62 hotels7,627 rooms

101 hotels10,760 rooms

120 hotels10,506 rooms

FullService

LimitedService

100%

94%6%

12% 70% 13%

75% 11%14%

44% 40%16%

15%19%

33% 7% 60%

Americas

ExtendedStay

66%

EMEA

APAC

InterContinental – Company profileFY 2010

18%

2424

9. Key figuresP&L evolution and forecasts

Sources: company reports and Reuters consensus estimates as of March 09, 2011

InterContinental – Company profileFY 2010

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

2007A 2008A 2009A 2010 A 2011E 2012E

Revenue EBITDA margin Net margin

Financials (in M$) 2007A 2008A 2009A 2010A 2011E 2012E CAGR 2007-2010Revenue 1,755 1,897 1,538 1,628 1,736 1,858 -2.5%

% Change in Revenue 12.4% 8.1% -18.9% 5.9% 6.6% 7.0%EBITDA 646 659 472 552 623 696 -5.1%

EBITDA margin 36.8% 34.7% 30.7% 33.9% 35.9% 37.5%Net Profit 417 262 214 293 330 386 -11.1%

Net margin 23.8% 13.8% 13.9% 18.0% 19.0% 20.8%

26

– Very strong brand portfolio with strong brand image (Intercontinental, Express by HI)

– Strong development plan in emerging countries such as Russia, China and India

– Strong sales network (Internet, travel agents, retailers)

– Largest loyalty program: Priority Club Rewards with 56 million members

– Cash generative, resilient business model

Strength

– Weakening share in North America in recent years due to aggressive expansion of main competitors such as Marriott and rationalization of network

– Reliability upon hotel sales within travel and tourism

– Weak financial performance, with decreasing revenues

Weaknesses

– Development of Internet sales facilities and marketing activities as opportunities to further develop revenues through this medium

– Considerable opportunities in emerging regions, such as Eastern Europe and Asia-Pacific

– Extended stay segment as a fast growing and profitable segment

Opportunities

– Currency fluctuations particularly in case of a weak US Dollar. Uncertain Market conditions.

– Threats of competition coming from budget and economic segments on Holiday Inn Express brand

– New innovating concepts on the midscale segment facing ageing Holiday Inn

Threats

10. SWOT analysis

InterContinental – Company profileFY 2010

27

12. Company history

Source: Company website

Birth of the company17771977 W. Bass sets up a brewery developing since 1960

1988 First move into the hospitality industry with the buying of Holiday Inns International1990 Acquisition of the North American Holiday Inn 1991 Launch of Holiday Inn Express

2004 Launch of Hotel Indigo2005 Launch of Staybridge UK

2008 Launch of Holiday Inn Club Vacations

2003Creation of the InterContinental Hotels Group, listed on the NY- and London Stock Exchange. The restaurant and pubs part of Six Continents became Mitchells & Butlers plc.Launch of Candlewood Suites

1994 Launch of Crowne Plaza (upscale move)

2007 Relaunch program of the Holiday Inn Brand family

1998 The Intercontinental Hotel Co

1997 Move to franchise operating modelLaunch of Staybridge Suites in North America

2000 Change of name into Six ContinentsAcquisition of Southern Pacific Hotels (Australia) & the Bristol Hotels & Resorts Inc (US)

2001 Acquisition of the European Posthouse chain of hotels (UK and Europe)Acquisition of the Intercontinental Hong Kong (China, Asia Pacific)

2006 Operating JV with All Nipon Airways (ANA), IHG ANA Hotels Group Japan,

InterContinental – Company profileFY 2010

28

Full Service

Limited service

Extended stay

InterContinental H&R

Crowne Plaza H&R

Holiday Inn H&R

Hotel Indigo

Holiday Inn Express

Holiday Inn Club Vacations

Staybridge Suites

Candlewood SuitesSource: IHG’s FY results 2010

12. Brands description

InterContinental – Company profileFY 2010

29

Overview

Full-service, luxury and upper-upscale brand

►InterContinental's global flagship brand, primarily serving international business and leisure travelers

►Key figuresFY 2010►ADR: $189►RevPar: $125►Occupancy Rate: 66%

Main competitors►Sofitel, Westin, JW Marriott H&R, Hilton, Park

Hyatt

Network

Network►171 hotels / 58,429 rooms in operation

= 341 rooms per hotel on average

Locations►in major cities and resort locations

►Geographical breakdown►more than 60 countries

FY 2009► ADR: $179► RevPar: $112► Occupancy rate:

63%

12. Brands description Full-service – InterContinental Hotels Resorts

33%

33%

34%

Source: Company website & reports

Americas

APAC

EAME

InterContinental – Company profileFY 2010

30

Overview

Full-service, upscale brand►Targeting mainly business travelers due to high-

level of business amenities►“Sleep advantage” programme in North America

and EMEA►Co-branded ANA Crowne Plaza hotels open in

Japan►Strong pipeline

►Key figuresFY 2010► ADR: $111► RevPar: $71 ► Occupancy Rate: 64%

Main competitors►Pullman, Sheraton, Doubletree, Renaissance,

Grand Hyatt

Network

Network►388 hotels / 106,155 rooms in operation

= 274 rooms per hotel on average

Locations►mainly in major getaway cities or in resort

locations

►Geographical breakdown►50 countriesFY 2009

► ADR: $109► RevPar: $66► Occupancy rate:

60%

Americas

APAC

EAME

12. Brands description Full-service – Crowne Plaza Hotels & Resorts

25%

53%

22%

Source: Company website & reportsInterContinental – Company profile

FY 2010

31

Overview

Full-service, midscale brand►The world’s most recognized midscale brand.

Hotels outside the US market are often of a better range than inside

►Key figuresFY 2010►ADR: $99►RevPar: $61►Occupancy Rate: 62%

Main competitors►Novotel, Courtyard, Ramada, Hyatt Place

Network

Network►1,241 hotels / 227,225 rooms in operation

= 183 rooms per hotel on average

Locations►no particular area requirements

Geographical breakdown►50 countries

FY 2009► ADR: $95► RevPar: $54► Occupancy rate:

56%

Americas

APAC

EAME

12. Brands description Full-service – Holiday inn Hotels & Resorts

13%

64%

23%

Source: Company website & reportsInterContinental – Company profile

FY 2010

32

Overview

Limited-service, midscale brand►Innovative design and concept, targeting mainly

business travelers►Boutique Hotel brand launched in 2004

►Key figuresFY 2010►ADR: $107►RevPar: $65►Occupancy Rate: 61%

Main competitors►Aloft

Network

Network►38 hotels / 4,548 rooms in operation

= 121 rooms per hotel on average

Locations►urban and nearly-urban locations

Geographical breakdown►35 hotels in the US►Increasing international expansion: 62 hotels in

the pipeline, including 5 hotels in APAC and 11 in EMEA

FY 2009► ADR: $106► RevPar: $58► Occupancy rate:

55%

12. Brands description Limited-service – Hotel Indigo

Source: Company website & reportsInterContinental – Company profile

FY 2010

33

Overview

Limited-service, economic brand

►Key figuresFY 2010►ADR: $94►RevPar: $59►Occupancy Rate: 63%

Main competitors►Ibis, Hampton, Fairfield Inn

Network

Network►2,075 hotels / 191,228 rooms in operation

= 92 rooms per hotel on average

Geographical breakdown►73 countriesFY 2009

► ADR: $92► RevPar: $56► Occupancy rate:

60%

Americas

APAC

EAME

12. Brands description Limited-service – Holiday Inn Express (1/2)

4%

84%

12%

Source: Company website & reportsInterContinental – Company profile

FY 2010

34

Holiday Inn Express : the most brilliant success of spin-off

Creation - Holiday Inn in 1952- Holiday Inn Express in 1991 (roll out in Europe in 1996)

Positioning- Complementary brand to Holiday Inn (full service, midscale) on the economy

segment (limited services)- Rooms look roughly the same- Differences in the extent of the hotel’s services and amenities

Branding- 2 names used: Holiday Inn Express vs. Express by Holiday Inn outside the US and

the UK - But current transformation to Holiday Inn Express worldwide

Existing network (end 2010): - Holiday Inn Express = 2,075 h. / 191 kr.- Holiday Inn = 1,241 h. / 227 kr.

A thriving brand with an incredibly quick development : larger network than Holiday Inn

12. Brands description Limited-service – Holiday Inn Express (2/2)

Spin-Off Of A Flagship Brand : case study

35

Overview

Extended stay, upscale brand

►Key figuresFY 2010►ADR: $95►RevPar: $68►Occupancy Rate: 72%

Main competitors►Residence Inn

Network

Network►188 hotels / 20,762 rooms in operation

= 110 rooms per hotel on average

Geographical breakdown►In the US and recently launched in the UK8 countries

FY 2009► ADR: $97► RevPar: $65► Occupancy rate:

67%

Americas

EAME

12. Brands description Extended stay – Staybridge Suites

96%

4%

Source: Company website & reportsInterContinental – Company profile

FY 2010

36

Overview

Extended stay, midscale brand

►Key figuresFY 2010►ADR: $62►RevPar: $43►Occupancy Rate: 69%

Main competitors►Suitehotel, Homewood Suites

Network

Network►288 hotels / 28,253 rooms in operation

= 98 rooms per hotel on average

Geographical breakdown►Only in North America

FY 2009► ADR: $66► RevPar: $42► Occupancy rate:

64%

12. Brands description Extended stay – Candlewood Suites

Source: Company website & reportsInterContinental – Company profile

FY 2010