IHG and Orange Lake Resorts Announce Alliance to Create a Timeshare Brand

Holiday Inn Club Vacations

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. October 14, 2008

SEPTEMBER 30, 2008. IHG (InterContinental Hotels Group) [LON: IHG, NYSE: IHG (ADRs)], the world's largest hotel group by number of rooms, announces today the formation of a strategic alliance with The Family of Orange Lake Resorts to create a new timeshare brand, Holiday Inn Club VacationsTM.

Holiday Inn Club Vacations will launch in December 2008 with Orange Lake's flagship 2,412 villa property in Orlando, Florida. This marks IHG's first move into the timeshare market, one of the fastest growing segments of the U.S. holiday and vacation industry. [Source: American Resort Development Association (ARDA)]

The conversion of the remaining Orange Lake resorts in Ascutney, Vermont (60 villas), Lake Geneva, Wisconsin (68 villas) and Panama City, Florida (18 villas) are scheduled to follow shortly after.

This alliance is unique in that it allows IHG to enter the timeshare industry, purely through an exclusive licensing and marketing agreement. Orange Lake will continue to own, operate and develop these timeshare resorts as a privately held company.

"This deal reinforces the strength of the Holiday Inn brand as we are able to move into the timeshare market with a good partner who knows the business well," said Andy Cosslett, chief executive officer, IHG. "We believe that timeshare is a natural progression for Holiday Inn due to our scale and customer base in North America. This comes at a time when the $1 billion global relaunch of Holiday Inn is progressing well. This agreement fits well with our business model as we are able to introduce the Holiday Inn brand to a new set of customers without the need for capital investment. With both companies focused on growth the alliance brings with it the opportunity to expand into major North American destinations."

Orange Lake is situated on over 1,400 acres with 2,412 villas, adjacently located to the new north entrance of Walt Disney World(R) Resort. The flagship resort has over 25 years of proven success in Orlando, the number one leisure destination for U.S. travelers. It offers a host of amenities including:

o 4 championship golf courses

o 7 swimming pools including a 12-acre outdoor entertainment complex

o 80 acre lake for water sports

o Five restaurants

o Retail and pro shops

"This is a great opportunity for our two companies because we share the same heritage and founder, Kemmons Wilson," said Don Harrill, president and chief executive officer for The Family of Orange Lake Resorts. "It was Kemmons' vision that changed the landscape for family vacations through his creation of the Holiday Inn hotel brand in 1952. With the re-launch of Holiday Inn and the continued growth of our company, we are prepared to reach new heights for our customers-and together write the next exciting chapter in our history. We believe this alliance will set the new standard by re-defining 'quality time' for families and for the timeshare industry today."

The marketing and licensing agreement also includes:

o The construction of a flagship Holiday Inn Resort hotel on the Orange Lake site in Orlando

o The marketing and rental of available timeshare villas through IHG's extensive reservation system and distribution channels, including Priority Club(R) Rewards, the world's largest hotel loyalty program with over 39 million members

o Participation in the Priority Club Rewards program including earning of Priority Club points on rentals with qualified rates and redemption for room nights

o The formation of the Holiday Inn ClubTM exchange program which will allow members of Holiday Inn Club Vacations to exchange timeshare weeks for hotel nights at over 4,000 hotels in the IHG family of brands.