KREMS, Austria, March 30, 2006. InterContinental Hotels Group has announced the development of its first ever European hotel as part of a healthcare complex, the InterContinental Resort & Spa in Krems, Austria.

A management agreement has been signed with IMC Beteiligungs GmbH, who will own and develop the 119 room hotel and 120 room healthcare clinic set to open in Autumn 2008. The newly built hotel will be adjacent to the healthcare clinic complete with five operating theatres. The healthcare clinic, which will specialise in treating heart diseases, is a separate enterprise and will be known as the Austrian Heart Centre.

The resort has been designed to create a tranquil yet exclusive atmosphere ideal for recovering patients, their visitors and families as well as guests looking to enjoy a health and spa holiday. The hotel's extensive wellness amenities will reflect this with over 2,500 square metres of spa including an indoor pool. There will also be 290 square metres of meeting space and an all day dining restaurant and bar.

The resort will overlook the scenic Wachau Valley near the city of Krems, less than an hour from Vienna International Airport. Its location among the vineyards of the region and with views of the Danube River will give it a peaceful and relaxing atmosphere. There will also be a wealth of healthy outdoor activities including walking, cycling and golfing on its doorstep.

Jennifer Fox, Chief Operating Officer, InterContinental Hotels & Resorts for Europe commented: "We are pleased to announce our first hotel and healthcare clinic concept in Europe. We have witnessed a growing trend in Europe for medical tourism with strong demand from the Middle East and Russia. Austria has a high standard of medical care and superb infrastructure so is ideally positioned to attract patients and guests from Europe and beyond. We will continue our strategy to develop and introduce similar complexes in Europe and other regions of the world."

The Vice Governor of Lower Austria, Dr Ernest Gabmann added, "The government of the province of Lower Austria welcomes the decision of IHG together with IMC to open a five-star hotel in Krems and the Wachau, one of the most beautiful river valleys in Europe and a UNESCO Cultural Heritage site."

InterContinental Hotels Group already operates the 229 room InterContinental Hotel & Conference Centre in Cleveland, USA which is located within the campus of the Cleveland Clinic.