Intercontinental Hotels Group PLC

Foreign Filer Report • Nov 12, 2008

6-K 1 ihg200811116k.htm 3RD QUARTER RESULTS Created by EDGAR Ease Plus (EDGAR Ease+) Control Number: Rev Number: Client Name: Project Name: Firm Name:

SECURITIES AND EXCHANGE COMMISSION

Washington DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934

For 11 November 2008

InterContinental Hotels Group PLC (Registrant's name)

Broadwater Park, Denham, Buckinghamshire, UB9 5HJ, United Kingdom (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F Form 40-F

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable

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EXHIBIT INDEX

Exhibit Number	Exhibit Description
99.1	3rd Quarter Results dated 11 November 2008

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99.1

11 November 2008

InterContinental Hotels Group PLC Third Quarter Results to 30 September 2008

Headlines
·	Global RevPAR growth of
1.6% at constant currency.
·	10,081 net rooms added in
the quarter. System size of 608,225 rooms (4,108 hotels), up 7% on third
quarter 2007.
·	25,546 rooms signed (164
hotels), taking the pipeline to 243,509 rooms (1,773 hotels), 40% of the
existing system size.
·	Total gross revenue* from
all hotels in IHG’s system of $5.1bn, up 8% at constant
currency.
·	Operating profit including
discontinued operations of $153m up 8% at constant currency.
·	Continuing revenue up 7%
from $453m to $486m. Continuing operating profit up 14% from $132m to $150m.
Revenue and operating profit include $11m benefit from two significant
liquidated damages receipts.
·	Excluding significant
liquidated damages receipts, continuing revenue up 5% (4% at constant currency)
and continuing operating profit up 5% (2% at constant currency).
·	Adjusted continuing
earnings per share (“EPS”) up 29% to 34.6¢. Adjusted total EPS
of 35.3¢. Basic total EPS of 32.2¢.
All figures and movements
unless otherwise noted are at actual exchange rates and before exceptional
items. See appendix 3 for analysis of financial headlines. Constant exchange
rate comparatives shown in appendix 4. (% CER) = change in constant currency.
*See appendix 5 for definition.

| Commenting on the
results and trading, Andrew Cosslett, Chief Executive of InterContinental
Hotels Group PLC said: |
| --- |
| “In the quarter we
delivered RevPAR growth ahead of the industry. We also opened over 19,000
rooms, a new record for the business, and saw our net system size grow by
10,000 rooms. “We expect the rate of new room openings to remain strong, reflecting the
size and quality of our development pipeline which stands at nearly a quarter
of a million rooms (1,773 hotels). Around 90,000 new rooms (540 hotels) are under
construction, and over half of these are currently expected to open in
2009. A small number of hotels are experiencing construction delays but,
at this stage, we are not seeing any material increase in the level of losses
from the pipeline. We signed deals for over 160 hotels in the quarter (25,546
rooms), but the current financial conditions are now impacting the availability
of debt finance and new signings are taking longer to finalise. “In October we have
seen a sharp deterioration in market conditions with preliminary data for the
month showing a global RevPAR decline of 4.5% with a decline of 5.7% in the US.
Throughout 2008 we have been controlling costs and capital spending tightly and
we are taking the necessary steps to manage both to be below this year’s
levels in 2009. Given the power of our brands, the size and resilience of our
pipeline and our leading reservations systems, we are positioned well to
continue to outperform the industry.” |

| Rooms: sustained system
growth | |
| --- | --- |
| · | 25,546 rooms (164 hotels)
were signed in the quarter (including 2,412 rooms under the Holiday Inn Club
Vacations brand), taking the total signed this year to almost 74,000 rooms.
Signings were up 68% in EMEA driven by strong signings in the Middle East (8
hotels) and up 42% in Asia Pacific with strong signings in China (11 hotels).
Excluding the Holiday Inn Club Vacations rooms, Americas signings were down 42%
(9,553 rooms) on the strong 2007 comparative. |
| · | The pipeline now stands at
243,509 rooms (1,773 hotels), up 21% on third quarter 2007. Over one third of
the pipeline is outside the Americas and almost two-thirds are midscale
developments. |
| · | 19,056 rooms (135 hotels)
were opened, up 36%, including 10,623 rooms in the Americas. In line with
IHG’s strategy of driving quality growth 8,975 rooms were removed, giving
net room additions of 10,081 for the quarter, up 36% on 2007. |
| Americas: RevPAR
outperformance across all brands | |
| Revenue
performance RevPAR increased 0.6%,
driven by rate growth of 4.0% offset by an occupancy decline of 2.3%. RevPAR
declined in the US in August and September, although all IHG’s brands
continued to perform ahead of their industry segments. Continuing revenue grew
4% from $234m to $243m, driven by 11% growth in revenues from managed hotels
and 4% growth in franchised hotel revenues. Operating profit
performance Operating profit from
continuing operations increased 5% to $126m. Continuing owned and leased hotel
profit increased by $1m to $10m driven by 5.8% RevPAR growth at the
InterContinental New York and 2.1% at the InterContinental Mark Hopkins, San
Francisco. Managed hotel profit increased $3m to $12m driven by 19.1% RevPAR
growth in Latin America. Franchised hotel profit increased $1m to $120m driven
by 6% growth in royalty fees, partly offset by a reduction in fees received on
new signings and changes in hotel ownership. | |

| EMEA: strong performance
in the Middle East |
| --- |
| Revenue
performance RevPAR increased 4.2%,
driven by rate with a small drop in occupancy. The Middle East continued to
perform strongly, growing RevPAR by 24.0%. Continental Europe grew RevPAR by
1.6%, including a 5.3% increase in Germany. In the UK, the Holiday Inn family
of brands outperformed their market segment recording RevPAR growth of 2.4%.
Continuing revenues increased 7% (6% CER). Excluding the $7m liquidated damages
receipt from one franchise contract, continuing revenues grew 2% (1%
CER). Operating profit
performance Operating profit from
continuing operations increased 15% (13% CER) to $46m. Excluding the $7m
liquidated damages receipt, continuing operating profit decreased $1m to $39m.
Continuing owned and leased hotels’ profit was flat at $14m, the
increased contribution from InterContinental London Park Lane being offset by
the impact of a weaker market on InterContinental Paris Le Grand. Managed hotel
profit decreased from $21m to $19m with continued growth in fees across Europe
and the Middle East being offset by a reduced contribution from a portfolio of
managed hotels in the UK. Franchised hotel profit increased from $16m to $25m
driven by the $7m liquidated damages receipt and a 17% increase in royalty fee
income due to a 9% increase in the number of franchised rooms across
EMEA. |

| Asia Pacific: continued
rooms growth drives profits |
| --- |
| Revenue
performance RevPAR increased 2.7%.
Greater China RevPAR grew 6.3%, with 32.6% growth in August due to the Beijing
Olympics. RevPAR was negatively impacted on either side of the games by visa
restrictions. In Japan RevPAR declined 4.4% in line with the industry. Across
the rest of Asia RevPAR grew 4.3% . Continuing revenues grew
22% (18% at CER) to $73m driven by 19% growth in owned and leased revenues and
15% growth in managed revenues. Excluding the $4m liquidated damages receipt
from one franchise contract, continuing revenues grew 15% (12% at
CER). Operating profit
performance Operating profit from
continuing operations increased 29% from $14m to $18m. Excluding the $4m
liquidated damages receipt, and before a $4m increase in regional overheads,
operating profit increased $4m. Owned and leased hotel operating profit grew
17% from $6m to $7m driven by RevPAR growth of
17.7% at the InterContinental Hong Kong after completion of its rolling
refurbishment in September 2007. Managed hotel profit
increased $4m to $17m driven by the contribution from the increasing number of
hotels under IHG management in the region. |

| Overheads, Interest, Tax
and Exceptional items |
| --- |
| In the third quarter total
regional overheads increased $4m to $38m. This was driven by continued planned
investment in marketing, support infrastructure and development in the Asia
Pacific region. Central costs decreased $2m to $40m, flat at constant
currency. The tax charge on profit
from continuing and discontinued operations, excluding the impact of
exceptional items, has been calculated using an estimated effective annual tax
rate of 25% (Q3 2007: 22%). The underlying rate before the impact of prior year
items was 37%. The reported tax rate may continue to vary year-on-year in
the foreseeable future due to prior year settlements and other
developments, but in the longer term is expected to trend up over time.
The interest charge for the period decreased by $5m to $28m due to a reduction
in average net debt and average interest rates. Exceptional
operating charges of $33m in the quarter included $15m relating to the Holiday
Inn brand relaunch. |

| Cash flow and net
debt |
| --- |
| $497m of cash was generated
from operating activities in the nine months to 30 September, up $177m on 2007.
In addition $91m of cash was generated from disposals including the sale in the
quarter of the Holiday Inn Jamaica for $30m and of a 31% stake in the Crowne
Plaza Christchurch for $24m. Year to date capital expenditure of $70m was $76m below 2007 levels. No shares
were repurchased during the third quarter. IHG’s net debt at the period
end was $1,351m, including the $201m finance lease on the InterContinental
Boston. In the second quarter IHG successfully refinanced $2.1bn of long term
debt facilities. |

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Appendix 1: Asset disposal programme

| | Number of
hotels | Proceeds | Net book
value |
| --- | --- | --- | --- |
| Disposed since April
2003 | 183 | $5.5bn | $5.2bn |
| Remaining hotels | 16 | - | $1.8bn |

For a full list please visit www.ihg.com/Investors

Appendix 2: Quarter 3 Rooms

| | Americas | EMEA | Asia
Pacific | Total |
| --- | --- | --- | --- | --- |
| Openings | 10,623 | 3,725 | 4,708 | 19,056 |
| Removals | (7,183) | (1,447) | (345) | (8,975) |
| Net room
additions | 3,440 | 2,278 | 4,363 | 10,081 |
| Signings | 15,628 | 3,531 | 6,387 | 25,546 |

Appendix 3: Financial headlines

Three months to 30 Sept $m	Total — 2008	2007	Americas — 2008	2007	EMEA — 2008	2007	Asia Pacific — 2008	2007	Central — 2008	2007
Franchised operating profit	149	136	120	119	25	16	4	1	-	-
Managed operating profit	48	43	12	9	19	21	17	13	-	-
Continuing owned and leased operating
profit	31	29	10	9	14	14	7	6	-	-
Continuing operating profit pre regional
overheads	228	208	142	137	58	51	28	20	-	-
Regional overheads	(38)	(34)	(16)	(17)	(12)	(11)	(10)	(6)	-	-
Continuing operating profit pre central
overheads	190	174	126	120	46	40	18	14	-	-
Central overheads	(40)	(42)	-	-	-	-	-	-	(40)	(42)
Continuing operating profit	150	132	126	120	46	40	18	14	(40)	(42)
Discontinued owned and leased operating
profit	3	6	3	4	-	2	-	-	-	-
Total operating profit	153	138	129	124	46	42	18	14	(40)	(42)

Appendix 4: Constant currency continuing operating profit growth before exceptional items

| | Americas — Actual currency | Constant
currency | EMEA — Actual currency | Constant
currency | Asia
Pacific — Actual currency | Constant currency** | Total — Actual currency | Constant
currency* |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Growth | 5.0% | 4.2% | 15.0% | 12.5% | 28.6% | 28.6% | 13.6% | 10.6% |

| Exchange
rates | EUR:USD | GBP:USD | RMB:USD |
| --- | --- | --- | --- |
| Q3 2008 | 0.67:1 | 0.53:1 | 6.84:1 |
| Q3 2007 | 0.73:1 | 0.49:1 | 7.54:1 |

• US dollar actual currency. ** Translated at constant 2007 exchange rates. *** After Central Overheads.

Appendix 5: Definition of total gross revenue

Total gross revenue is defined as total room revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels. It is not revenue attributable to IHG, as it is derived mainly from hotels owned by third parties. The metric is highlighted as an indicator of the scale and reach of IHG’s brands.

For further information, please contact:

| Investor Relations (Heather
Wood; Catherine Dolton): | +44 (0) 1895 512
176 |
| --- | --- |
| Media Affairs (Leslie
McGibbon; Emma Corcoran): | +44 (0) 1895 512
425 |
| | +44 (0) 7808 094
471 |

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High resolution images to accompany this announcement are available for the media to download free of charge from www.vismedia.co.uk . This includes profile shots of the key executives.

UK Q&A Conference Call:

A conference call with Andrew Cosslett (Chief Executive) and Richard Solomons (Finance Director and Interim President of the Americas) will commence at 9.30 am (London time) on 11 November. There will be an opportunity to ask questions.

| International
dial-in: | +44 (0)20 7019
0812 |
| --- | --- |
| UK Free Call: | 0800 018 0795 |
| Conference ID: | HOTEL |

A recording of the conference call will also be available for 7 days. To access this please dial the relevant number below and use the access number 9599.

| International
dial-in: | +44 (0)20 7970
4998 |
| --- | --- |
| UK Free Call: | 0800 279 9414 |

US Q&A conference call:

There will also be a conference call, primarily for US investors and analysts, at 10.00am (Eastern Standard Time) on 11 November with Andrew Cosslett (Chief Executive). There will be an opportunity to ask questions.

| International
dial-in: | +44 020 7019
0812 |
| --- | --- |
| US Toll Free: | 877 818 6787 |
| Conference ID: | HOTEL |

A recording of the conference call will also be available for 7 days. To access this please dial the relevant number below and use the access number 9610.

| International
dial-in: | +44 (0)20 7192
0832 |
| --- | --- |
| US Toll Free: | 866 855 7643 |

Website:

The full release and supplementary data will be available on our website from 7.00 am (London time) on Tuesday 11 th November. The web address is www.ihg.com/Q3 .

Notes to Editors:

InterContinental Hotels Group (IHG) [LON:IHG, NYSE:IHG (ADRs)] is the world's largest hotel group by number of rooms. IHG owns, manages, leases or franchises, through various subsidiaries, over 4,100 hotels and more than 600,000 guest rooms in nearly 100 countries and territories around the world. The Group owns a portfolio of well recognised and respected hotel brands including InterContinental ® Hotels & Resorts, Hotel Indigo ® , Crowne Plaza ® Hotels & Resorts, Holiday Inn ® Hotels and Resorts, Holiday Inn Express ® , Staybridge Suites ® and Candlewood Suites ® , and also manages the world's largest hotel loyalty programme, Priority Club ® Rewards with 40 million members worldwide.

IHG has more than 1,700 hotels in its development pipeline, which will create 200,000 jobs worldwide over the next few years.

InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales. IHG offers information and online reservations for all its hotel brands at www.ihg.com and information for the Priority Club Rewards programme at www.priorityclub.com . For the latest news from IHG, visit our online Press Office at www.ihg.com/media

Cautionary note regarding forward-looking statements

This announcement contains certain forward-looking statements as defined under US law (Section 21E of the Securities Exchange Act of 1934). These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements often use words such as ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’ or other words of similar meaning. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed in or implied by, such forward-looking statements. Factors that could affect the business and the financial results are described in ‘Risk Factors’ in the InterContinental Hotels Group PLC Annual report on Form 20-F filed with the United States Securities and Exchange Commission.

InterContinental Hotels Group PLC

GROUP INCOME STATEMENT For the three months ended 30 September 2008

| | 3 months ended 30 September
2008 — Before exceptional items | Exceptional items (note 8) | Total | 3 months ended 30 September
2007 — Before exceptional items | Exceptional items (note 8) | Total |
| --- | --- | --- | --- | --- | --- | --- |
| | $m | $m | $m | $m | $m | $m |
| Continuing operations | | | | | | |
| Revenue (note 3) | 486 | - | 486 | 453 | - | 453 |
| Cost of sales | (213) | - | (213) | (198) | - | (198) |
| Administrative expenses | (105) | (16) | (121) | (97) | (5) | (102) |
| Other operating income and
expenses | 8 | 4 | 12 | 3 | 17 | 20 |
| | _ | | _ | | _ | |
| | 176 | (12) | 164 | 161 | 12 | 173 |
| Depreciation and amortisation | (26) | (21) | (47) | (29) | - | (29) |
| | _ | | | _ | | |
| Operating profit (note 4) | 150 | (33) | 117 | 132 | 12 | 144 |
| Financial income | 2 | - | 2 | 4 | - | 4 |
| Financial expenses | (30) | - | (30) | (37) | - | (37) |
| | _ | | _ | | _ | |
| Profit before tax | 122 | (33) | 89 | 99 | 12 | 111 |
| Tax (note 9) | (24) | 24 | - | (19) | 18 | (1) |
| | _ | | _ | | _ | |
| Profit for the period from continuing
operations | 98 | (9) | 89 | 80 | 30 | 110 |
| Profit for the period from discontinued
operations (note 10) | 2 | - | 2 | 5 | 12 | 17 |
| | _ | | _ | | _ | |
| Profit for the period attributable to the
equity holders of the parent | 100 | (9) | 91 | 85 | 42 | 127 |
| | ==== | ==== | ==== | ==== | ==== | ==== |
| Earnings per ordinary share (note 11) | | | | | | |
| Continuing operations: | | | | | | |
| Basic | | | 31.4¢ | | | 37.0¢ |
| Diluted | | | 30.8¢ | | | 36.3¢ |
| Adjusted | 34.6¢ | | | 26.9¢ | | |
| Adjusted diluted | 33.9¢ | | | 26.4¢ | | |
| Total operations: | | | | | | |
| Basic | | | 32.2¢ | | | 42.8¢ |
| Diluted | | | 31.5¢ | | | 41.9¢ |
| Adjusted | 35.3¢ | | | 28.6¢ | | |
| Adjusted diluted | 34.6¢ | | | 28.1¢ | | |
| | ==== | | ==== | ==== | | ==== |

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InterContinental Hotels Group PLC GROUP INCOME STATEMENT For the nine months ended 30 September 2008

| | 9 months ended 30 September
2008 — Before exceptional items | Exceptional items (note 8) | Total | 9 months ended 30 September
2007 — Before exceptional items | Exceptional items (note 8) | Total |
| --- | --- | --- | --- | --- | --- | --- |
| | $m | $m | $m | $m | $m | $m |
| Continuing operations | | | | | | |
| Revenue (note 3) | 1,438 | - | 1,438 | 1,285 | - | 1,285 |
| Cost of sales | (637) | - | (637) | (589) | - | (589) |
| Administrative expenses | (297) | (30) | (327) | (267) | (5) | (272) |
| Other operating income and
expenses | 13 | 16 | 29 | 8 | 69 | 77 |
| | _ | | _ | | _ | _ |
| | 517 | (14) | 503 | 437 | 64 | 501 |
| Depreciation and amortisation | (83) | (23) | (106) | (85) | - | (85) |
| | | _ | | _ | _ | |
| Operating profit (note 4) | 434 | (37) | 397 | 352 | 64 | 416 |
| Financial income | 8 | - | 8 | 16 | - | 16 |
| Financial expenses | (91) | - | (91) | (72) | - | (72) |
| | _ | __ | _ | | _ | |
| Profit before tax | 351 | (37) | 314 | 296 | 64 | 360 |
| Tax (note 9) | (88) | 22 | (66) | (63) | 22 | (41) |
| | _ | __ | _ | | _ | |
| Profit for the period from continuing
operations | 263 | (15) | 248 | 233 | 86 | 319 |
| Profit for the period from discontinued
operations (note 10) | 6 | - | 6 | 9 | 18 | 27 |
| | _ | __ | _ | | _ | _ |
| Profit for the period attributable to the
equity holders of the parent | 269 | (15) | 254 | 242 | 104 | 346 |
| | ==== | ==== | ==== | ==== | ==== | ==== |
| Earnings per ordinary share (note 11) | | | | | | |
| Continuing operations: | | | | | | |
| Basic | | | 86.1¢ | | | 97.0¢ |
| Diluted | | | 84.1¢ | | | 95.2¢ |
| Adjusted | 91.3¢ | | | 70.8¢ | | |
| Adjusted diluted | 89.2¢ | | | 69.6¢ | | |
| Total operations: | | | | | | |
| Basic | | | 88.2¢ | | | 105.2¢ |
| Diluted | | | 86.1¢ | | | 103.3¢ |
| Adjusted | 93.4¢ | | | 73.6¢ | | |
| Adjusted diluted | 91.2¢ | | | 72.2¢ | | |
| | ==== | | ==== | ==== | | ==== |

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InterContinental Hotels Group PLC

GROUP STATEMENT OF RECOGNISED INCOME AND EXPENSE For the nine months ended 30 September 2008

	2008 9 months ended 30 September $m	2007 9 months ended 30 September restated* $m
Income and expense recognised directly in
equity
Gains on valuation of available-for-sale
assets	8	14
Gains/(losses) on cash flow
hedges	1	(2)
Actuarial (losses)/gains on defined benefit
pension plans	(27)	26
Exchange differences on retranslation of
foreign operations	(21)	17
	____	____
	(39)	55
	____	____
Transfers to the income
statement
On cash flow hedges : interest
payable	2	-
On disposal of available-for-sale
assets	(17)	(18)
	____	____
	(15)	(18)
	____	____
Tax
Tax on items above taken directly to or
transferred from equity	9	8
Tax related to share schemes recognised
directly in equity	(2)	(10)
	____	____
	7	(2)
	____	____
Net (expense)/income recognised directly
in equity	(47)	35
Profit for the period	254	346
	____	____
Total recognised income and expense for
the period attributable to the equity holders of the parent	207	381
	====	====

• Restated following the adoption of IFRIC 14 (note 1).

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InterContinental Hotels Group PLC

GROUP CASH FLOW STATEMENT For the nine months ended 30 September 2008

	2008 9 months ended 30 September	2007 9 months ended 30 September
	$m	$m
Profit for the period	254	346
Adjustments for:
Net financial expenses	83	56
Income tax charge	70	46
Gain on disposal of assets, net of
tax	-	(18)
Exceptional operating items before
depreciation	14	(64)
Depreciation and amortisation	106	88
Equity settled share-based cost, net of
payments	21	24
	_____	_____
Operating cash flow before movements in
working capital	548	478
Decrease/(increase) in net working
capital	83	(16)
Retirement benefit contributions, net of
cost	(27)	(64)
Cash flows relating to exceptional operating
items	(37)	-
	_____	_____
Cash flow from operations	567	398
Interest paid	(89)	(52)
Interest received	8	18
Tax received/(paid) on operating
activities	11	(44)
	_____	_____
Net cash from operating
activities	497	320
	_____	_____
Cash flow from investing
activities
Purchases of property, plant and
equipment	(29)	(92)
Purchases of intangible assets	(34)	(24)
Purchases of associates and other financial
assets	(7)	(30)
Disposal of assets, net of costs	29	74
Proceeds from associates and other financial
assets	62	98
Tax paid on disposals	-	(28)
	_____	_____
Net cash from investing
activities	21	(2)
	_____	_____
Cash flow from financing
activities
Proceeds from the issue of share
capital	2	30
Purchase of own shares	(139)	(103)
Purchase of own shares by employee share
trusts	(19)	(117)
Proceeds on release of own shares by
employee share trusts	2	20
Dividends paid to shareholders	(86)	(1,489)
(Decrease)/increase in borrowings	(128)	1,148
	_____	_____
Net cash from financing
activities	(368)	(511)
	_____	_____
Net movement in cash and cash equivalents
in the period	150	(193)
Cash and cash equivalents at beginning of
the period	105	351
Exchange rate effects	(17)	(2)
	_____	_____
Cash and cash equivalents at end of the
period	238	156
	=====	=====

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InterContinental Hotels Group PLC

GROUP BALANCE SHEET 30 September 2008

	$m	2007 30 September restated* — $m	2007 31 December restated* — $m
ASSETS
Property, plant and equipment	1,766	1,917	1,934
Goodwill	215	221	221
Intangible assets	308	327	335
Investment in associates	46	65	65
Retirement benefit assets	33	57	48
Other financial assets	169	197	188
	_____	_____	_____
Total non-current assets	2,537	2,784	2,791
	_____	_____	_____
Inventories	4	6	6
Trade and other receivables	458	467	472
Current tax receivable	28	37	109
Cash and cash equivalents	238	156	105
Other financial assets	14	16	18
	_____	_____	_____
Total current assets	742	682	710
Non-current assets classified as held for
sale	195	130	115
	______	______	______
Total assets	3,474	3,596	3,616
	=====	=====	=====
LIABILITIES
Loans and other borrowings	(16)	(16)	(16)
Trade and other payables	(860)	(784)	(784)
Current tax payable	(403)	(467)	(426)
	_____	_____	_____
Total current liabilities	(1,279)	(1,267)	(1,226)
	_____	_____	_____
Loans and other borrowings	(1,573)	(1,787)	(1,748)
Retirement benefit obligations	(99)	(106)	(111)
Trade and other payables	(288)	(229)	(279)
Deferred tax payable	(134)	(122)	(148)
	_____	_____	_____
Total non-current
liabilities	(2,094)	(2,244)	(2,286)
Liabilities classified as held for
sale	(15)	(6)	(6)
	_____	_____	_____
Total liabilities	(3,388)	(3,517)	(3,518)
	=====	=====	=====
Net assets (note 15)	86	79	98
	=====	=====	=====
EQUITY
Equity share capital	146	162	163
Capital redemption reserve	12	10	10
Shares held by employee share
trusts	(55)	(63)	(83)
Other reserves	(2,908)	(2,918)	(2,918)
Unrealised gains and losses
reserve	33	49	38
Currency translation reserve	211	226	233
Retained earnings	2,641	2,607	2,649
	______	______	______
IHG shareholders’ equity (note
16)	80	73	92
Minority equity interest	6	6	6
	______	______	______
Total equity	86	79	98
	=====	=====	=====
*	Restated following the adoption of IFRIC 14
(note 1).

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InterContinental Hotels Group plc

NOTES TO THE INTERIM FINANCIAL STATEMENTS

| 1. |
| --- |
| These interim financial statements have been
prepared in accordance with International Accounting Standard 34 ‘Interim
Financial Reporting’ using, on a consistent basis, the accounting
policies set out in the 2007 InterContinental Hotels Group PLC (the Group or
IHG) Annual Report and Financial Statements. On 30 May 2008, IHG announced its intention to change its reporting currency
from sterling to US dollars to reflect the profile of revenue and operating
profit which are now primarily generated in US dollars or US dollar linked
currencies. These financial statements are presented in US dollars and all
comparative information has been restated accordingly. The Group adopted IFRIC 14 ‘IAS 19 – The limit on a Defined
Benefit Asset, Minimum Funding Requirements and their Interaction’ for
the first time at 31 December 2007. IFRIC 14 provides guidance on assessing the
limit in IAS 19 ‘Employee Benefits’ on the amount of the surplus
that can be recognised as an asset. It also explains how the pension asset or
liability may be affected by a statutory or contractual minimum funding
requirement. The adoption of IFRIC 14 has required the Group balance sheet at
30 September 2007 to be restated to recognise a retirement benefit asset of
$57m. The 31 December 2007 comparative balance sheet has also been amended to
show the retirement benefit assets net of tax previously recorded within
deferred tax payable. There have been corresponding changes to the actuarial
gains and related tax reported in the restated Group Statement of Recognised
Income and Expense for the nine months ended 30 September 2007 and year ended
31 December 2007. These interim financial statements are unaudited and do not constitute
statutory accounts of the Group within the meaning of Section 240 of the
Companies Act 1985. The auditors have carried out a review of the financial
information in accordance with the guidance contained in ISRE 2410 (UK and
Ireland) ‘Review of Interim Financial Information Performed by the
Independent Auditor of the Entity’ issued by the Auditing Practices
Board. The financial information for the year ended 31 December 2007 has been
extracted from the Group’s published financial statements for that year
and converted to US dollars. These financial statements contain an unqualified
audit report and have been filed with the Registrar of Companies. |

| 2. |
| --- |
| The
results of operations have been translated into US dollars at the weighted
average rates of exchange for the period. In the case of the pound sterling,
the translation rate for the nine months ended 30 September is $1= £0.51
(2008 3 months, $1 = £0.53; 2007 9 months, $1 = £0.50; 2007 3
months, $1=£0.49). In the case of the euro, the translation rate for the
nine months ended 30 September is $1 = €0.66 (2008 3 months, $1 =
€0.67; 2007 9 months, $1 = €0.74; 2007 3 months, $1 =
€0.73). Assets and liabilities have been translated
into US dollars at the rates of exchange on the last day of the period. In the
case of the pound sterling, the translation rate is $1=£0.56 (2007 31
December $1 = £0.50; 30 September $1 = £0.49). In the case of the
euro, the translation rate is $1 = €0.70 (2007 31 December $1 =
€0.68; 30 September $1= €0.71). |

3.	2008 3 months ended 30 September	2007 3 months ended 30 September	2008 9 months ended 30 September	2007 9 months ended 30 September
	$m	$m	$m	$m
Continuing operations
Americas (note 5)	243	234	720	676
EMEA (note 6)	137	128	408	345
Asia Pacific (note 7)	73	60	214	179
Central	33	31	96	85
	____	____	____	____
	486	453	1,438	1,285
Discontinued operations (note 10)	10	18	32	64
	____	____	____	____
	496	471	1,470	1,349
	====	====	====	====

4.	2008 3 months ended 30 September $m	2007 3 months ended 30 September $m	2008 9 months ended 30 September $m	2007 9 months ended 30 September $m
Continuing operations:
Americas (note 5)	126	120	368	340
EMEA (note 6)	46	40	135	88
Asia Pacific (note 7)	18	14	47	41
Central	(40)	(42)	(116)	(117)
	____	____	____	____
	150	132	434	352
Exceptional operating items (note 8)	(33)	12	(37)	64
	____	____	____	____
	117	144	397	416
Discontinued operations (note 10)	3	6	10	14
	____	____	____	____
	120	150	407	430
	====	====	====	====

5.	2008 3 months ended 30 September $m	2007 3 months ended 30 September $m	2008 9 months ended 30 September $m	2007 9 months ended 30 September $m
Revenue
Owned and leased	63	63	195	185
Managed	41	37	138	117
Franchised	139	134	387	374
	____	____	____	____
Continuing operations	243	234	720	676
Discontinued operations *	10	12	32	50
	____	____	____	____
Total	253	246	752	726
	====	====	====	====
Operating profit
Owned and leased	10	9	29	25
Managed	12	9	50	34
Franchised	120	119	335	328
Regional overheads	(16)	(17)	(46)	(47)
	____	____	____	____
Continuing operations	126	120	368	340
Discontinued operations*	3	4	10	13
	____	____	____	____
Total	129	124	378	353
	====	====	====	====

• Discontinued operations are all owned and leased.

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6.	2008 3 months ended 30 September $m	2007 3 months ended 30 September $m	2008 9 months ended 30 September $m	2007 9 months ended 30 September $m
Revenue
Owned and leased	66	66	187	172
Managed	36	40	133	116
Franchised	35	22	88	57
	____	____	____	____
Continuing operations	137	128	408	345
Discontinued operations*	-	6	-	14
	____	___	___	___
Total	137	134	408	359
	====	====	====	====
Operating profit
Owned and leased	14	14	33	17
Managed	19	21	75	59
Franchised	25	16	60	43
Regional overheads	(12)	(11)	(33)	(31)
	____	____	____	____
Continuing operations	46	40	135	88
Discontinued operations*	-	2	-	1
	____	___	___	___
Total	46	42	135	89
	====	====	====	====

• Discontinued operations are all owned and leased.

7.	2008 3 months ended 30 September $m	2007 3 months ended 30 September $m	2008 9 months ended 30 September $m	2007 9 months ended 30 September $m
Revenue
Owned and leased	37	31	114	98
Managed	30	26	86	70
Franchised	6	3	14	11
	____	___	___	___
Total	73	60	214	179
	====	====	====	====
Operating profit
Owned and leased	7	6	27	21
Managed	17	13	43	32
Franchised	4	1	7	5
Regional overheads	(10)	(6)	(30)	(17)
	____	____	____	____
Total	18	14	47	41
	====	====	====	====
All results relate to continuing
operations.

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8.	2008 3 months ended 30 September $m	2007 3 months ended 30 September $m	2008 9 months ended 30 September $m	2007 9 months ended 30 September $m
Continuing operations:
Exceptional operating items
Holiday Inn brand relaunch (a)	(15)	-	(24)	-
Office reorganisations (b)	(1)	8	(8)	8
Gain on sale of associate investments	6	-	6	22
Gain on sale of other financial assets	-	4	12	34
Loss on disposal of hotels*	(2)	-	(2)	-
Impairment charge (c)	(21)	-	(21)	-
	____	____	____	____
	(33)	12	(37)	64
	====	====	====	====
Tax
Tax on exceptional operating items	12	(6)	10	(2)
Exceptional tax credit (d)	12	24	12	24
	____	____	____	____
	24	18	22	22
	====	====	====	====
Discontinued operations:
Gain on disposal of assets (note 10)
Gain on disposal of hotels**	-	14	-	22
Tax charge	-	(2)	-	(4)
	____	____	____	____
	-	12	-	18
	====	====	====	====

| * | Relates to hotels classified as continuing
operations. |
| --- | --- |
| ** | Relates to hotels classified as discontinued
operations. |
| a) | Relates to costs incurred in support of the
worldwide relaunch of the Holiday Inn brand family that was announced on 24
October 2007. |
| b) | Relates to further costs incurred on the
relocation of the Group’s head office and the closure of its Aylesbury
facility. On the face of the income statement, for the nine months ended 30
September 2008, $2m of this cost is included in depreciation and amortisation
with the remainder in administrative expenses, and for the three and nine
months ended 30 September 2007, charges of $5m are included in administrative
expenses with the remainder in other operating income and expenses. |
| c) | Relates to the capitalised value of
management contracts accounted for as intangible assets and arises from a
revision to expected fee income. Estimated future cash flows have been
discounted at 10% (previous valuation: 10%). The charge is included in the
depreciation and amortisation line on the face of the income statement and
relates to the EMEA business segment. |
| d) | Relates to the release of provisions which
are exceptional by reason of their size or incidence relating to tax matters
which have been settled or in respect of which the relevant statutory
limitation period has expired. |

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| 9. |
| --- |
| The tax charge on the combined profit from
continuing and discontinued operations, excluding the impact of exceptional
items (note 8), has been calculated using an estimated effective annual tax
rate of 25% (2007 22%) analysed as follows. |

	2008	2008	2008	2007	2007	2007
3 months ended 30
September	Profit $m	Tax $m	Tax rate	Profit $m	Tax $m	Tax rate
Before exceptional items
Continuing operations	122	(24)		99	(19)
Discontinued operations	3	(1)		6	(1)
	____	____		____	____
	125	(25)	20%	105	(20)	19%
Exceptional items
Continuing operations	(33)	24		12	18
Discontinued operations	-	-		14	(2)
	____	____		____	____
	92	(1)		131	(4)
	====	====		====	====
Analysed as:
UK tax		18			12
Foreign tax		(19)			(16)
		____			_____
		(1)			(4)
		====			====

	2008	2008	2008	2007	2007	2007
9 months ended 30
September	Profit $m	Tax $m	Tax rate	Profit $m	Tax $m	Tax rate
Before exceptional items
Continuing operations	351	(88)		296	(63)
Discontinued operations	10	(4)		14	(5)
	____	____		____	____
	361	(92)	25%	310	(68)	22%
Exceptional items
Continuing operations	(37)	22		64	22
Discontinued operations	-	-		22	(4)
	____	____		____	____
	324	(70)		396	(50)
	====	====		====	====
Analysed as:
UK tax		1			(10)
Foreign tax		(71)			(40)
		____			_____
		(70)			(50)
		====			====

By also excluding the effect of prior year items, the equivalent effective tax rate would be approximately 37% (2007 35%). Prior year items have been treated as relating wholly to continuing operations.

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| 10. |
| --- |
| Discontinued operations are those relating
to hotels sold or those classified as held for sale as part of the asset
disposal programme that commenced in 2003. These disposals underpin IHG’s
strategy of growing its managed and franchised business whilst reducing asset
ownership. |
| The results of discontinued operations which
have been included in the consolidated income statement, are as follows: |

	2008 3 months ended 30 September	2007 3 months ended 30 September	2008 9 months ended 30 September	2007 9 months ended 30 September
	$m	$m	$m	$m
Revenue	10	18	32	64
Cost of sales	(7)	(12)	(22)	(47)
	____	____	____	____
	3	6	10	17
Depreciation and amortisation	-	-	-	(3)
	____	____	____	____
Operating profit	3	6	10	14
Tax	(1)	(1)	(4)	(5)
	____	____	____	____
Profit after tax	2	5	6	9
Gain on disposal of assets, net of tax (note
8)	-	12	-	18
	____	____	____	____
Profit for the period from discontinued
operations	2	17	6	27
	====	====	====	====
	2008 3 months ended 30 September cents per share	2007 3 months ended 30 September cents per share	2008 9 months ended 30 September cents per share	2007 9 months ended 30 September cents per share
Earnings per share from discontinued
operations
Basic	0.8	5.8	2.1	8.2
Diluted	0.7	5.6	2.0	8.1
	====	====	====	====

The effect of discontinued operations on segment results is shown in notes 5 and 6.

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| 11. |
| --- |
| Basic earnings per ordinary share is
calculated by dividing the profit for the period available for IHG equity
holders by the weighted average number of ordinary shares, excluding investment
in own shares, in issue during the period. Diluted earnings per ordinary share is calculated by adjusting basic earnings
per ordinary share to reflect the notional exercise of the weighted average
number of dilutive ordinary share options outstanding during the period. Adjusted earnings per ordinary share is disclosed in order to show performance
undistorted by exceptional items, to give a more meaningful comparison of the
Group’s performance. |

| 3 months ended 30
September | 2008 | 2008 | 2007 | 2007 |
| --- | --- | --- | --- | --- |
| | Continuing operations | Total | Continuing operations | Total |
| Basic earnings per share | | | | |
| Profit available for equity holders
($m) | 89 | 91 | 110 | 127 |
| Basic weighted average number of ordinary
shares (millions) | 283 | 283 | 297 | 297 |
| Basic earnings per share (cents) | 31.4 | 32.2 | 37.0 | 42.8 |
| | ==== | ===== | ==== | ===== |
| Diluted earnings per share | | | | |
| Profit available for equity holders
($m) | 89 | 91 | 110 | 127 |
| Diluted weighted average number of ordinary
shares (millions) | 289 | 289 | 303 | 303 |
| Diluted earnings per share
(cents) | 30.8 | 31.5 | 36.3 | 41.9 |
| | ==== | ===== | === | === |
| Adjusted earnings per
share | | | | |
| Profit available for equity holders
($m) | 89 | 91 | 110 | 127 |
| Less adjusting items (note 8): | | | | |
| Exceptional operating items ($m) | 33 | 33 | (12) | (12) |
| Tax ($m) | (24) | (24) | (18) | (18) |
| Gain on disposal of assets, net of tax
($m) | - | - | - | (12) |
| | _ | | _ | |
| Adjusted earnings ($m) | 98 | 100 | 80 | 85 |
| Basic weighted average number of ordinary
shares (millions) | 283 | 283 | 297 | 297 |
| Adjusted earnings per share
(cents) | 34.6 | 35.3 | 26.9 | 28.6 |
| | ==== | ==== | ==== | ==== |
| Diluted weighted average number of ordinary
shares (millions) | 289 | 289 | 303 | 303 |
| Adjusted diluted earnings per share
(cents) | 33.9 | 34.6 | 26.4 | 28.1 |
| | ==== | ==== | ==== | ==== |

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2008	2008	2007	2007
Continuing operations	Total	Continuing operations	Total

| Basic earnings per share — Profit available for equity holders
($m) | 248 | 254 | 319 | 346 |
| --- | --- | --- | --- | --- |
| Basic weighted average number of ordinary
shares (millions) | 288 | 288 | 329 | 329 |
| Basic earnings per share (cents) | 86.1 | 88.2 | 97.0 | 105.2 |
| | ==== | ==== | ==== | ==== |
| Diluted earnings per share | | | | |
| Profit available for equity holders
($m) | 248 | 254 | 319 | 346 |
| Diluted weighted average number of ordinary
shares (millions) | 295 | 295 | 335 | 335 |
| Diluted earnings per share
(cents) | 84.1 | 86.1 | 95.2 | 103.3 |
| | ==== | ==== | ==== | ==== |
| Adjusted earnings per
share | | | | |
| Profit available for equity holders
($m) | 248 | 254 | 319 | 346 |
| Less adjusting items (note 8): | | | | |
| Exceptional operating items ($m) | 37 | 37 | (64) | (64) |
| Tax ($m) | (22) | (22) | (22) | (22) |
| Gain on disposal of assets, net of tax
($m) | - | - | - | (18) |
| | _ | | _ | |
| Adjusted earnings ($m) | 263 | 269 | 233 | 242 |
| Basic weighted average number of ordinary
shares (millions) | 288 | 288 | 329 | 329 |
| Adjusted earnings per share
(cents) | 91.3 | 93.4 | 70.8 | 73.6 |
| | ==== | ==== | ==== | ==== |
| Diluted weighted average number of ordinary
shares (millions) | 295 | 295 | 335 | 335 |
| Adjusted diluted earnings per share
(cents) | 89.2 | 91.2 | 69.6 | 72.2 |
| | ==== | ==== | ==== | ==== |

| The diluted weighted average number of
ordinary shares is calculated as: | 2008 3 months ended 30 September millions | 2007 3 months ended 30 September millions | 2008 9 months ended 30 September millions | 2007 9 months ended 30 September millions |
| --- | --- | --- | --- | --- |
| Basic weighted average number of ordinary
shares | 283 | 297 | 288 | 329 |
| Dilutive potential ordinary shares –
employee share options | 6 | 6 | 7 | 6 |
| | _ | | _ | |
| | 289 | 303 | 295 | 335 |
| | ==== | ==== | ==== | ==== |

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12.	2008 9 months ended 30 September cents per share	2007 9 months ended 30 September cents per share	2008 9 months ended 30 September $m	2007 9 months ended 30 September $m
Paid during the period:
Final (declared for previous
year)	29.2	25.9	86	92
Special interim	-	400.0	-	1,397
	____	____	____	____
	29.2	425.9	86	1,489
	====	====	====	====
Proposed for the period:
Interim	12.2	11.5	35	34
	====	====	====	====

13.	2008 30 September	2007 30 September	2007 31 December
	$m	$m	$m
Cash and cash equivalents	238	156	105
Loans and other borrowings –
current	(16)	(16)	(16)
Loans and other borrowings –
non-current	(1,573)	(1,787)	(1,748)
	____	____	____
Net debt	(1,351)	(1,647)	(1,659)
	====	====	====
Finance lease liability included
above	(201)	(200)	(200)
	====	====	====

14.	2008 9 months ended 30 September	2007 9 months ended 30 September	2007 12 months ended 31 December
	$m	$m	$m
Net increase/(decrease) in cash and cash
equivalents	150	(193)	(237)
Add back cash flows in respect of other
components of net debt:
Decrease/(increase) in borrowings	128	(1,148)	(1,108)
	____	____	____
Decrease/(increase) in net debt arising from
cash flows	278	(1,341)	(1,345)
Non-cash movements:
Finance lease liability	(1)	(13)	(18)
Exchange and other adjustments	31	(30)	(33)
	____	____	____
Decrease/(increase) in net
debt	308	(1,384)	(1,396)
Net debt at beginning of the
period	(1,659)	(263)	(263)
	____	____	____
Net debt at end of the
period	(1,351)	(1,647)	(1,659)
	====	====	====

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15.	2008 30 September	2007 30 September restated*	2007 31 December restated*
	$m	$m	$m
Americas	724	782	780
EMEA	561	786	739
Asia Pacific	485	562	536
Central	176	148	167
	____	____	____
	1,946	2,278	2,222
Net debt	(1,351)	(1,647)	(1,659)
Unallocated assets and
liabilities	(509)	(552)	(465)
	____	____	____
	86	79	98
	====	====	====

• Restated following the adoption of IFRIC 14 (note 1).

16.	2008 9 months ended 30 September $m	2007 9 months ended 30 September restated* $m	2007 12 months ended 31 December $m
At beginning of the period	92	1,330	1,330
Total recognised income and expense for the
period	207	381	485
Equity dividends paid	(86)	(1,489)	(1,524)
Issue of ordinary shares	2	30	32
Purchase of own shares	(139)	(106)	(162)
Movement in shares in employee share
trusts	(17)	(97)	(117)
Equity settled share-based cost, net of
payments	21	24	48
	____	____	____
At end of the period	80	73	92
	====	====	====

• Restated following the adoption of IFRIC 14 (note 1).

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| 17. |
| --- |
| At 30 September 2008, the amount contracted
for but not provided for in the financial statements for expenditure on
property, plant and equipment was $62m (2007 31 December $20m; 30 September
$32m). At 30 September 2008, the Group had contingent liabilities of $13m (2007 31
December $10m; 30 September $10m), mainly comprising guarantees given in the
ordinary course of business. In limited cases, the Group may provide performance guarantees to third-party
owners to secure management contracts. The maximum exposure under such
guarantees is $208m (2007 31 December $243m; 30 September $238m). It is the
view of the Directors that, other than to the extent that liabilities have been
provided for in these financial statements, such guarantees are not expected to
result in financial loss to the Group. The Group has given warranties in respect of the disposal of certain of its
former subsidiaries. It is the view of the Directors that, other than to the
extent that liabilities have been provided for in these financial statements,
such warranties are not expected to result in financial loss to the
Group. |

| 18. |
| --- |
| In March and June 2007, the Group made the
first two payments of £10m under the agreement to make special pension
contributions of £40m to the UK pension plan. A further payment of
£10m was made on 31 January 2008 and the final £10m is scheduled
for payment in 2009. On 24 October 2007, the Group announced a worldwide relaunch of its Holiday
Inn brand family. In support of this relaunch, IHG will make a non recurring
revenue investment of $60m which will be charged to the income statement as an
exceptional item, of which $24m has been charged in the first nine months of
2008. |

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| INDEPENDENT REVIEW REPORT TO InterContinental
Hotels Group pLC |
| --- |
| Introduction We have been engaged by the Company to
review the condensed set of financial statements in the interim financial
report for the three and nine months ended 30 September 2008 which comprises
the Group income statements, Group statement of recognised income and expense,
Group cash flow statement, Group balance sheet and the related notes 1 to 18.
We have read the other information contained in the interim financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements. This report is made solely to the Company in accordance with guidance
contained in ISRE 2410 (UK and Ireland) ‘Review of Interim Financial
Information Performed by the Independent Auditor of the Entity’ issued by
the Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company, for our work,
for this report, or for the conclusions we have formed. Directors' Responsibilities The interim financial report is the
responsibility of, and has been approved by, the Directors. The Directors are
responsible for preparing the interim financial report in accordance with the
Disclosure and Transparency Rules of the United Kingdom’s Financial
Services Authority. As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this interim financial report
has been prepared in accordance with International Accounting Standard 34,
‘Interim Financial Reporting’, as adopted by the European
Union. Our Responsibility Our responsibility is to express to the
Company a conclusion on the condensed set of financial statements in the
interim financial report based on our review. Scope of Review We conducted our review in accordance with
International Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity’ issued by the Auditing Practices Board for use in the United
Kingdom. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly we do not express an
audit opinion. Conclusion Based on our review, nothing has come to our
attention that causes us to believe that the condensed set of financial
statements in the interim financial report for the three and nine months ended
30 September 2008 is not prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European Union and the
Disclosure and Transparency Rules of the United Kingdom’s Financial
Services Authority. Ernst & Young LLP London 10 November 2008 |

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

| | InterContinental Hotels
Group PLC |
| --- | --- |
| | (Registrant) |
| By: | /s/ C.
Cox |
| Name: | C. COX |
| Title: | COMPANY SECRETARIAL
OFFICER |
| Date: | 11 November
2008 |