China

China

Leading in China – the world’s highest opportunity hotel market
10 July 2007

Agenda
Introduction The China Opportunity Optimising Growth Building the Right Team Financial Overview Conclusions & Q&A
Andrew Cosslett, Chief Executive

Joon Aun Ooi, VP Hotel Openings

Jerry Huang, VP Development

Winnie Ng, VP Human Resources

Richard Solomons, Finance Director

Andrew Cosslett, Chief Executive Edmond Ip, Chief Operating Officer - China

2

IHG's growth strategy
Goal Faster growth by making IHG’s brands the first choice for guests and hotel owners Strategy Build the industry’s strongest operating system focused on the biggest markets and segments where scale really counts • • • • Target By end 2008: Net organic growth of 50,000 - 60,000 rooms

Priorities Brand performance Excellent hotel returns Market scale/knowledge Aligned organisation

3

Focus on highest opportunity segments and markets
1 million additional rooms required around the world by 2012 Two thirds midscale, majority branded Midscale • • • • US - biggest opportunity China and Japan UK Other scale markets identified Upscale • Major cities e.g. Moscow, Los Angeles, Tokyo, Saigon, Beijing
• Strengthen existing positions • New locations

• High end resorts Investment to drive existing brands/segments offers greatest returns Very top and bottom of market are less attractive Opportunity for additional brand development on system platform

4

Creation of a scale business in China
China is IHG's third largest market with 22,665 rooms Including the rooms pipeline, China is IHG’s second largest market
– 29,771 room pipeline, over 50% of which are InterContinental or Crowne Plaza – IHG signed 40% of all new international branded rooms in 2006

On track to meet target of 125 hotels by end 2008 Investing to build a scale business:
– Infrastructure - 130 employees in Shanghai head office, c.30,000 in total – Class leading reservations...