IHG GBP500m Special Dividend

InterContinental Hotels Group PLC
16 November 2004


16 November 2004


InterContinental Hotels Group PLC ("InterContinental Hotels Group" or the 
"Company")


Special Dividend and Share Consolidation


The Board of InterContinental Hotels Group PLC (IHG) today announces it is
publishing a circular setting out full details of the proposed special dividend
and associated share consolidation and convening an extraordinary general
meeting. This follows the Board's announcement, on 9 September 2004, of its
intention to return £500 million to shareholders by way of a special dividend.
The special dividend forms part of a total of £1 billion of funds that the Board
has committed to be returned to its shareholders since the separation of Six
Continents PLC into InterContinental Hotels Group PLC and Mitchells & Butlers
plc in April 2003.


It is proposed that the payment of the special dividend of 72 pence per existing
Ordinary Share be accompanied by a consolidation of the Company's ordinary share
capital (to maintain comparability of the Company's share price before and after
the payment of the special dividend and to maintain the position of participants
under the Group's share schemes). The special dividend will be paid as a second
interim dividend in respect of the financial year ending 31 December 2004 and is
expected to be paid to Shareholders on Friday 17 December 2004.


The share consolidation will replace every 28 Existing Ordinary Shares with 25
New Ordinary Shares. Fractional entitlements arising from the share
consolidation will be aggregated and sold in the market on behalf of the
relevant shareholders. The proceeds of sale are expected to be sent to
shareholders on Friday 17 December 2004. The value of any shareholder's
fractional entitlement will not exceed the value of one New Ordinary Share.


The ratio used for the purposes of the share consolidation has been determined
by reference to the closing mid-market price of 680 pence per Existing Ordinary
Share on 12 November 2004 (being the last practicable day prior to the date of
posting of this Document) when there were 699,176,104 Existing Ordinary Shares.


As at the close of business on 12 November 2004, the total amount of the special
dividend was equivalent to just over 10.54 per cent. of the market
capitalisation of the Company. The effect of the share consolidation will be to
reduce the number of Ordinary Shares in issue by approximately the same
percentage.


As all ordinary shareholdings in the Company will be consolidated, shareholders'
percentage holdings in the issued share capital of the Company will (save in
respect of fractional entitlements) remain unchanged.



Expected timetable

Latest time and date for receipt of Forms of Proxy                   10.30 a.m. on Wednesday 8 December
                                                                     2004

Extraordinary General Meeting                                        10.30 a.m. on Friday 10 December
                                                                     2004

Record Date for entitlement to the Special Dividend and for the      6.00 p.m. on Friday 10 December
Share Consolidation                                                  2004

Shares marked ex-Special Dividend                                    Monday 13 December 2004

Commencement of dealings in New Ordinary Shares                      8.00 a.m. on Monday 13 December
                                                                     2004

CREST accounts credited with New Ordinary Shares                     Monday 13 December 2004

Payment of the Special Dividend. Despatch of cheques for fractional  Friday 17 December 2004
entitlements and certificates for New Ordinary Shares


If any of the above times and/or dates change, the revised times and/or dates
will be notified to Shareholders by announcement through the Regulatory
Information Service of the London Stock Exchange.


The circular will be posted to shareholders and submitted to the UK Listing
Authority today. It will shortly be available for inspection at the UK Listing
Authority's Document Viewing Facility which is situated at: Financial Services
Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS, telephone 020
7066 1000.


All definitions used in the circular to Shareholders dated 16 November 2004 have
the same meaning when used in this announcement.


For further information, please contact


InterContinental Hotels Group

Media Enquiries              Leslie McGibbon             [phone]

Investor Relations           Gavin Flynn                 [phone]


Cazenove                     David Clasen                [phone]


Cazenove, which is regulated in the United Kingdom by the Financial Services
Authority, is acting exclusively for InterContinental Hotels Group and for no
one else in connection with the Special Dividend and Share Consolidation and
will not be responsible to any other persons for providing the protections
afforded to the customers of Cazenove & Co. Ltd, nor for providing advice to any
other person in relation to the Special Dividend and Share Consolidation.


                      This information is provided by RNS
            The company news service from the London Stock Exchange