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    Media Release: InterContinental Hotels Group Partnership

    Document date: Thu 05 Jun 2003 Published: Thu 05 Jun 2003 09:14:08
    Document No: 238505 Document part: A
    Market Flag: Y
    Classification: Other

    HOMEX - Perth

    Burswood Limited and InterContinental Hotels Group (formerly Six
    Continents Group) today entered into agreements for the development
    of a new Holiday Inn hotel at the Burswood Resort complex, and the
    establishment of a partnership to manage the new hotel and existing
    Burswood Hotel.

    InterContinental Hotels Group (IHG) will construct the new 291-room,
    3(1/2)-star hotel on land adjacent to the existing Burswood
    Convention Centre under a 30-year lease. Construction of the new
    'Holiday Inn Burswood' is expected to commence in August 2003 and is
    scheduled for completion by early 2005. Burswood will construct a
    236-bay carpark beneath the new hotel. The total project cost is
    approximately A$50 million.

    Under the Partnership arrangements, IHG will operate the rooms of the
    new hotel, together with the rooms of the existing five-star,
    413-room Burswood Hotel, which will be re-branded 'InterContinental
    Burswood Resort Perth'. Burswood will operate the food, beverage and
    meeting room facilities within both hotels through subsidiary
    company, Burswood Catering & Entertainment Pty Ltd.

    IHG and Burswood will earn a fee for the provision of the rooms and
    food and beverage services respectively. The profits of the
    Partnership will be apportioned to each of the parties according to
    their respective interests in the Partnership.

    At the end of the 30-year lease, Burswood has an obligation to buy
    back the Holiday Inn hotel. Burswood also has the first right of
    purchase should IHG elect to dispose of its interest in the
    Partnership and new hotel after an initial five-year period.

    The agreements are subject to a number of approvals, including the
    approval of the Western Australian Minister for Racing and Gaming,
    Liquor Licensing Authority and Foreign Investment Review Board. The
    agreements are also subject to successful tendering of the hotel and
    carpark construction contracts.

    In addition to benefits for the State's tourism industry, the new
    development will generate significant local employment opportunities
    during the construction phase. When fully operational, the new hotel
    is expected to create approximately 144 new jobs for Western

    Burswood Managing Director, John Schaap, said the venture was
    strategically important to Burswood and its competitive positioning.

    "The partnership will maximise our competitive advantage,
    particularly in the convention market, by providing the Resort with a
    more appealing mix of accommodation for conference delegates," Mr
    Schaap said.

    "The combined management of two hotel facilities through our
    partnership with IHG will create a more diverse hotel offering for
    Burswood, catering to both mid-level and deluxe accommodation

    Mr Schaap said as a fully integrated Resort, valuable synergies would
    be generated for the business, which would be complemented by
    Burswood's recent refurbishment and new facilities.

    "Greater accommodation and car parking capacity will also allow us to
    capitalise on opportunities for increasing visitation and meeting
    peak period demand.

    "One of the key advantages is that Burswood will develop a much
    stronger market position nationally and globally, through the
    worldwide network and selling power of IHG.

    "The partnership will enable us to leverage benefits from IHG's
    strong global branding, promotion, loyalty and reservation systems to
    boost our profile and appeal as a corporate, convention and leisure
    destination," Mr Schaap said.

    InterContinental Hotels Group Managing Director Asia Pacific, Patrick
    Imbardelli, said the partnership agreement would double the size of
    its hotel portfolio in Perth.

    "The opening of Holiday Inn Burswood will position InterContinental
    Hotels Group as the largest international hotel operator in Perth,
    with a total of four hotels and 1,074 rooms," Mr Imbardelli said.

    "Burswood is the ideal location and venue for InterContinental, one
    of the world's most renowned luxury hotel brands. By introducing both
    the InterContinental and Holiday Inn brands to the complex, we can
    provide a wider choice to business and leisure travellers covering
    mid-scale to five-star accommodation experiences."

    For further information, please contact:

    John Schaap Julie Cameron
    (08) 9362 7702 (08) 9362 7033 / 0411 701 765


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