IHG to Increase Rooms by 7000 Within Three Years

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. October 14, 2008

MAY 9, 2007. InterContinental Hotels Group (IHG) has announced an aggressive regional development plan that will see almost 7000 rooms added to the group's Middle East and Africa portfolio over the next three years.

The dramatic increase in capacity will come from the expected opening of at least 30 properties across five of the group's hotel brands located in eleven countries throughout the region. The multi-brand expansion will make a significant contribution to InterContinental Hotels Group's global objective to achieve net organic growth of 50-60,000 hotel rooms by 2008.

The regional plan represents not only rapid growth of the hospitality industry across key destinations in the Middle East and Africa, but also significant diversification of travel trends as more established markets mature and confidence grows in emerging tourist destinations and business hubs.

"The next few years will be an era of extensive growth and diversification for InterContinental Hotels Group across the MENA region,' said Tom Rowntree, Vice President, Sales & Marketing, Middle East & Africa.

'Our multi-brand expansion across five tiers of hotel accommodation is indicative of the commitment we are making to Middle East & African countries both in more established markets as well as bourgeoning tourist destinations. We are confident in the long-term success of the hospitality industry here and as such the area will be an integral part of InterContinental Hotels Group's global strategy going forward.'

In the upscale travel sector, InterContinental Hotels Group is building on its existing portfolio of properties under both the InterContinental Hotels & Resorts and Crowne Plaza brands. Seven InterContinental hotel deals have been signed and will be developed in key destinations such as Saudi Arabia and the Dubai Festival City property due to open later this year.

Similarly, at least three Crowne Plaza properties will enhance the brand's presence in the Middle East over the next two years. Each hotel will be strategically located within thriving cities or up-and-coming economies to capitalise on the brand's hallmark business facilities. In the UAE, Crowne Plaza Dubai Festival City will complement the InterContinental property at the same complex and will also open later this year. Connected to the InterContinental property by a 3,800sqm conference centre across two levels, Crowne Plaza Dubai Festival City is set to become the new place to meet for up-and-coming businessmen and women in the dynamic city.

While there is substantial growth ahead for the five-star sector, InterContinental Hotels Group is focusing its most aggressive development plans on the four-star and mid-scale property tiers. The established Holiday Inn brand will increase through the signing of eight properties to date in Nigeria, Ghana, Jordan, South Africa, Qatar, Egypt and two in the UAE. Like the recent hotel opened in Sharjah and one to open in Abu Dhabi, new Holiday Inn properties will carry the established brand hallmarks of 'the best night's sleep', 'the best breakfast' and dependable levels of friendly service at excellent value.

While InterContinental, Crowne Plaza and Holiday Inn are familiar brands across the MENA region, a new name will soon be added to the global hotel group's regional portfolio. Express by Holiday Inn is the fastest growing limited-service brand in the world and InterContinental Hotels Group has expansion plans for it throughout the Middle East, Africa and South Africa over the next few years.

Finally, expansion will also come through InterContinental Hotels Group's entrance into the extended-stay market through the launch of Staybridge Suites. Four property deals, amounting to 558 new rooms, are already in the pipeline, in the UAE, Egypt and Kuwait, with plans to expand throughout the Middle East in the near future.

The Staybridge Suites brand will deliver a unique accommodation proposition to the region, aimed primarily at long-stay business travellers looking for 'more home than hotel.' With the 'sprit' of home and hospitality at its heart, the properties will target specialist business travellers on mid to long-term assignments and also family groups on extended holidays.

Across all brands most developments are currently set for the UAE with eight properties in the immediate pipeline. While this is representative of the tremendous growth that continues in the country, InterContinental Hotels Group is already branching out into emerging markets such as several African countries including Libya. Overall, the group's development strategy will re-affirm its position as one of the leading multi-brand hotel companies in the region and the most globally recognised hotel company in the world.