Investors

INTERCONTINENTAL HOTELS GROUP PLC
Pro forma Results for the Nine Months to 30 September 2003

• Group operating profit for the quarter to 30 September 2003 up 9.6%.
• Total Hotels operating profit for the quarter to 30 September 2003 up 6.6%.
  • Americas operating profit up $5m to $82m demonstrating the strength of our midscale franchising business and indicating signs of improvement in some markets, but no consistent trend.
  • EMEA operating profit down £5m to £37m. Continental Europe remains challenging, particularly in France and Germany. UK Holiday Inn estate continues to show positive trends with performance consistently ahead of the market.
  • Asia Pacific operating profit marginally below last year at $6m with business now close to pre SARS levels.
  • Central overheads and marketing down by £8m.
• Improved distribution in the extended stay market with the acquisition of the Candlewood Suites brand, subject to CNDL shareholder approval.
• Cost reduction programme on track with annualised run rate of savings of $70m as at September 2003.
• Continuing strong cash and capital control. Net debt at 30 September 2003, £532m.
• Excellent performance for Soft Drinks with record profits for the quarter of £27m – up 22.7% against the prior year, helped by exceptional summer weather.

Richard North, Chief Executive, InterContinental Hotels Group PLC, said:

“We continue to strengthen this great company for the future. We are driving revenue, cutting overheads and selling assets we do not need to own.

“Trading around the world is something of a mixed bag. We are seeing the beginning of a recovery in the UK but conditions in Europe remain difficult. Asia Pacific has proved enormously resilient with trading now close to pre SARS levels. Finally, North America appears to be at the turning point but we are not yet convinced that a sustainable upturn has begun.

“We have achieved a great deal, albeit much remains to be done. Nonetheless we are well placed to benefit from the recovery when it comes.”

For further information, please contact:

Teleconference for Analysts

A teleconference with Richard North (CEO) and Richard Solomons (CFO) will commence at 9.00 am (London time) on 19 November. There will be an opportunity to ask questions. The conference call will conclude at approximately 9.30 am (London time).

To join us for this conference call please dial the relevant number below by 9.00 am (London time).

A recording of the conference call will be available for 7 days. To access this please dial the relevant number below and use the access number 676483

Download full Pro forma Results announcement (PDF format)