IHG Signs Agreement for New InterContinental Hotel in Mendoza, Argentina

The 218-guestroom InterContinental Mendoza will be located in city renowned for its spectacular vineyards

MIAMI, FL - IHG (IHG) [LON:IHG, NYSE:IHG (ADRs)], the world’s largest hotel group by number of rooms, today announced it has signed a franchise agreement with KLP Emprendimientos S.A. for development of the InterContinental Mendoza, in Mendoza, Argentina.

It will be IHG’s third InterContinental in Argentina, along with the venerable InterContinental Buenos Aires, and the under-construction InterContinental Nordelta Buenos Aires, Residence & Spa, in the Nordelta area of Buenos Aires.

Slated to open in March 2010, the 15-story InterContinental Mendoza will total 218 guestrooms, inclusive of 62 suites and will be conveniently located next to a Convention Center. The hotel boasts 10 meeting rooms totaling 22,500 square feet, inclusive of a 12,900 square foot ballroom.

Situated in a new emerging business district, adjacent also to the city’s largest upscale shopping center, Mendoza Plaza, the hotel will be located ten minutes from downtown Mendoza and twenty minutes from the city’s international airport. Amenities include a full-service spa, swimming pool, gym, restaurant and casino.

Mendoza is located towards the middle section of the country’s western boarder, on the eastern side of the Andes. The city is a regional capital, positioned on a major international thoroughfare linking Argentina with the important seaports of Chile. The region, rich in natural resources, is the heart and soul of Argentina’s wine country, where European settlers introduced the ancient craft of winemaking in the 19th century.

The wineries in Mendoza are famed to produce the world’s highest ranked Malbec wines.The city is also an adventure tourism center, offering world-class hiking, biking, fishing, rafting, horseback riding in the summer as well as world-class skiing and snowboarding in the winter. Mendoza attracts more than 700,000 tourists per year, making tourism one of the region’s fastest growing industries.

In 2008 National Geographic Traveler published its annual destination scorecard and Mendoza was widely acclaimed (number 10 out of 109 worldwide destinations) in a survey that took into consideration environmental and ecological quality; social and cultural integrity; condition of historic buildings and archaeological sites; aesthetic appeal; quality of tourism management; and outlook for the future.

“We are delighted to announce yet another InterContinental hotel in Argentina,” said Alvaro Diago, COO, IHG, Latin America and Caribbean. “A presence in a city such as Mendoza furthers our growth in areas that not only attract business travelers, but are renown as a tourism destination. In Mendoza’s case, the vineyards are a particular allure, and we look forward to meeting the needs of this broad-base of travelers.”

The world’s first truly global hotel brand, InterContinental Hotels & Resorts has had a continuous presence in Latin America since the brand’s founding in Brazil in 1946. Over its 63 years, there is no brand in the region with more international appeal. InterContinental Hotels & Resorts throughout Latin America strives to provide its guests with an experience unique to each destination - uncompromising global standards, while respecting the heritage of the communities each hotel calls home.

IHG has more than 180 hotels in Mexico, Central and South America and the Caribbean, and has been serving Latin America for over 60 years. IHG is the world’s largest hotel group by number of rooms, and has hotels situated in nearly every key market throughout the Latin American territory.