1

InterContinental and Crowne Plaza Dubai Festival City

IHG in the Middle EastKirk Kinsell

IHG is well positioned in the right locations – system

2

Near East (25 hotels)

Saudi(23 hotels)

Gulf(28 hotels)

Libya

Egypt

Saudi Arabia

Oman

Syria

* Note: IHG manages Israel as part of it’s European operation, therefore system size and performance figures are not includedwithin the Middle East regional numbers. As at Q3 ’10.

Total System Rooms

TOTAL 7619,649

2

30

4

22

16

305

9,147

989

4,510

4,405

2293Other

Hotels

The Middle East in the context of EMEA

3

62%

38%

84%

16%

65%

35%

Rest of Europe, Middle East & AfricaMiddle East

Source: IHG. ¹EBIT = is 2009 Europe Middle East and Africa region managed and franchised profits. ² Q3 2010

Managed & Franchised EBIT¹ Total system (rooms)² Total pipeline (rooms)²

Agenda

• Favourable market dynamics and strong fundamentals

• IHG in the Middle East

• Highly profitable growth – scaling the opportunity

• Summary

4

Favourable market dynamics and strong fundamentals

Holiday Inn Cairo Citystars

5

The Middle East region has grown rapidlyand is benefiting from favourable tailwinds

Middle East GDP ($b) Middle East Population (m)

Forecast total travel and tourism demand Airport capacity expansion (passengers m)

62

5

12

12

75

160

70

93

Dubai

Jebel Ali, Dubai

Abu Dhabi

Doha, Qatar Existing Capacity

Expansion

$262bn

$612bn

2010 2020

9% CAGR

Source: IMF, WTTC, Deloitte Hospitality; Press searches

Source: IMFSource: IMF

• Large and growing inbound market: 50m+ per year

• 50% of arrivals are from within the region (30 cities have >1m people)

2010

1,414

2000

524

2000 2010

123156

+10%+2%

% of World 1.6 2.12.3 2.3% of World

6

Strong traditional drivers of leisure travel

7

Historical Sites Religion

Beach Resorts City Leisure

PetraEgypt Mecca Medina

Red Sea Dubai Beirut

High business and domestic penetration

8

Source: IHG September 2010 YTD

Business vs. Leisure International vs. Domestic

36%

64%

41%

59%

Business Leisure International Domestic

The Dubai Model – shifting from oil to tourism and increasing diversification

9

• Solid fundamentals support attractive long-term prospects

• Diversification away from oil and natural resources

Dubai in 1991 Dubai in 2010

Yas Island – Abu Dhabi Economic Cities – Saudi The Pearl - Qatar Financial District - Bahrain

Gulf followers:

IHG in the Middle East

InterContinental Amman, Jordan

10

IHG‟s heritage provides strong foundations

11

IC Phoenicia Beirut

1960 1970 1980 1990 2000

IC Dubai

HI Salalah

CP Bahrain

IC Riyadh

HI Kuwait CP Sheikh Zayed Dubai

IC Semiramis HIEX Dubai Internet City

IC Amman SBS City Stars

IHG

OF

FIC

ES

BeirutSaudi Arabia

Cairo Dubai

2010

IC Dubai Festival City

SBS Yas Island

Strong history has also driven significant outbound travel to our properties in other regions (eg Europe)

Strong brand loyalty and guest satisfaction

12

Source: IHG, All data September Year to date. All hotels

PCR room nights contribution (% and total) PCR contribution by market

29%

42%

2008 2010

0.9m

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Egypt Saudi Arabia UAE

2008 2010

1.3m

We have built a stand alone operation to provideleading owner support

13

OPERATIONS ENABLERGROWTH

• 45 employees in the Dubai office

• Semi-autonomous operation

Hotel Operations

Sales &Marketing

Design &Engineering

Risk Management

Develop-ment

Finance

HumanResources

IT

Legal

IHG has the leading share of system and pipeline

14

0

5000

10000

15000

20000

25000

30000

35000

IHG Starwood Accor Hilton Marriott Rotana Rezidor* Millenium

Ro

om

s

Pipeline System

Source: IHG Q3 2010; other data is STR Global September 2010. * Rezidor (Carlson)

Driving a significant recent ramp-up in pipeline growth

15

Source: IHG

0

5

10

15

20

25

30

35

2005 2006 2007 2008 2009 Q3 2010

Pipeline

IHG System Size and Pipeline by Brand, rooms („000)

Building the right brands

Video

16

Iconic, brand defining hotels –Crowne Plaza and Staybridge Suites Yas Island

17

Iconic, brand defining hotels –InterContinental and Crowne Plaza Dubai Festival City

18

Iconic, brand defining hotels -InterContinental Abu Dhabi

19

Iconic, brand defining hotels –Crowne Plaza Sohar, Oman

20

Iconic, brand defining hotels –Holiday Inn Riyadh Al Qasr

21

Iconic, brand defining hotels -Holiday Inn Express Dubai Internet City

22

Rigorous approach to development planning

• Market planning analyses supply and demand dynamics

• Location planning focuses on site profile, brand fit and upcoming major developments

• Owner profiling identifies individuals and organisations with long-term growth potential

23

IHG is well positioned in the right locations – pipeline

24

Near East

Saudi

Gulf

Libya

Egypt

Saudi Arabia

Oman

Syria

* Note: IHG manages Israel as part of it’s European operation, therefore system size and performance figures are not includedwithin the Middle East regional numbers. As at Q3 ’10.

Total Pipeline Rooms

TOTAL 3810,959

4

11

4

10

9

468

3,498

799

2,835

3,359

Other

Hotels

IHG is well positioned in the right locations – total

25

Near East

Saudi

Gulf

Libya

Egypt

Saudi Arabia

Oman

Syria

* Note: IHG manages Israel as part of it’s European operation, therefore system size and performance figures are not includedwithin the Middle East regional numbers. As at Q3 ’10.

Total System& Pipeline

Rooms

TOTAL 3810,959

4

11

4

10

9

468

3,498

799

2,835

3,359

Other

Hotels Rooms Hotels

7619,649

2

30

4

22

16

305

9,147

989

4,510

4,405

2293

We have built the right relationships with the right owners

22 21 20

13

High Net Worth Individuals Public/Private Sector Company

Government/Quasi Government/Royal

Mega Developer

26

Source: IHG

• Broad base of contacts

• Strong loyal owner base

• Continued appetite for IHG brands with repeat owners

Type of Owners (# Properties owned)

Excellent owner relationships

Video

27

Winning the War for Talent

• c.23,500 people work in our hotels across MEA

• Another c.14,000 people will be needed over the next 3 years

• Over 80,000 e-careers applications received in 2010

• Nationalisation important in the MEA war for talent

28

Our people are highly engaged

29

94% are proud towork for us

88% would recommend us as a

place to work

85% intend to stay with the company

for the next 2 years

85% feel happy to come to work at

IHG

84% are willing to put in extra effort to

get the job done

88% feel the job gives them a real

sense of achievement

IHG is well equipped for the future

30

Trend IHG's Advantage

Focused and discerningdevelopment strategy

World class management offer backed by global system power

Globally preferred brands offeringunique guest experiences

Strong heritage and connections

“Room to grow” –focus on career development

Increased room supply

Most sophisticated owner –asset managers

Heightened brand awareness

Continued importanceof trust & relationships

Nationalisation

Highly profitable growth – scaling the opportunity

Crowne Plaza Muscat, Oman

31

-2% 0% 2% 4% 6% 8% 10% 12% 14% 16%

Occupancy

Average Daily Rate

Strong RevPAR growth across the region

32

Riyadh

Muscat

Manama

Kuwait

Jeddah

Dubai

Doha

Cairo

Beirut

Amman

Abu Dhabi

Middle East

Selected Middle East Markets RevPAR 10 Year CAGR (1999-2009)

Source: STR Global

Highly profitable

• Revenue decline partially due to the renewal of some old contracts

• No requirement for IHG capital expenditure

• Cost increase due to investment in stand-alone operations

• Established management structure supports future growth

33

$m Middle East financial results (Managed and franchised only)

2009 2010 (forecast)

Revenue 60 58

Costs* (13) (14)

EBIT 47 44

Margin 78% 76%

* Does not include an allocation of Europe, Middle East and Africa regional overheads

Large and high quality pipeline

18

14

6

38

Pre-Construction Under Construction Pre Opening Total

34

Pipeline by Construction Phase (# of total properties)

Source: IHG Q3 2010

Large and high quality pipeline –Crowne Plaza Dead Sea Resort, Jordan

35

Large and high quality pipeline –InterContinental Tripoli, Libya

36

Significant medium term opportunity

• A very strong pipeline spread across brands delivering above average profitability

37

Source: IHG; System size September 2010 excludes 2 non-branded hotels

Current PipelineSeptember 2010 Management Fees ($‟000)

1130

916

1022

44

3874

2 4

$800 - $1,400

$600 - $900

$300 - $600

$150 - $400

$75 - $200

Our longer term potential

• Substantial long term opportunity

– Significant growth in midscale segment

– Ramp-up in new brand openings (Indigo,Staybridge Suites)

– Attractiveness of frontier markets (Syria, Libya, Iraq)

– Franchising growth - Express in Saudi

38

IHG illustrative hotel potential

76

c.100

c.190

2010 2014 2020

Summary

• Global industry tailwinds benefit the Middle East

• Regional dynamics will support robust future growth

• IHG has a strong heritage and leading position in the region

• Key and loyal partnerships with the right owners

• Rigorous approach to development in the right locations

• Large and high quality pipeline

• No capital investment required to grow

• Highly profitable growth

39

Q&A

InterContinental Taba Heights, Egypt

40

InterContinental and Crowne Plaza Dubai Festival City

IHG in the Middle EastKirk Kinsell