The Carlyle Group Acquires 892-Room, Four-Hotel Portfolio in San Francisco Bay Area; Properties to be Managed by Prism Hotels & Resorts

Los Angeles – Global private equity firm The Carlyle Group has acquired an 892-room portfolio of hotel properties in northern California. The four-hotel acquisition includes the 309-room Crowne Plaza Hotel at the San Francisco International Airport; the 230-room Holiday Inn in northeast Sacramento; and the 198-room Holiday Inn Concord and 155-room Holiday Inn Walnut Creek hotels, both located in the East Bay Area. Financial terms were not disclosed.

"The San Francisco Bay area is one of the last markets to recover from the latest economic downturn and we’re now seeing considerable growth there," said Paul Brady, managing director of Carlyle’s U.S. real estate group. "We are excited by the prospects of investing approximately $8 million towards capital upgrades of the properties and hiring Prism Hotels to re-focus the management efforts at the properties. Our ability to acquire these properties at a discount to replacement cost is consistent with our fund’s strategy."

Dallas-based Prism Hotels & Resorts has been tapped to manage the properties for The Carlyle Group. The hotel management company currently manages more than 5,000 rooms across the United States and the Caribbean.

"We are pleased to increase our presence in the Bay area and are excited to partner with such an esteemed company as The Carlyle Group, as well as the strong group of employees at each of the properties," said Steve Van, chief executive officer of Prism Hotels & Resorts.

"Northern California is an important area for IHG and we are pleased to work with The Carlyle Group," said Brian Quinn, RVP Crowne Plaza Development for IHG. "This investment by The Carlyle Group is a testament to the strength of our relationship and The Carlyle Group’s confidence in IHG’s brands, Crowne Plaza, Holiday Inn and Holiday Inn Express, as hotels that guests know well and love."

All four properties will continue to operate as franchises under the Intercontinental Hotels Group umbrella, although the Walnut Creek property will be converted to a Holiday Inn Express once the renovation is complete.

About Prism Hotels & Resorts
Dallas-based Prism Hotels & Resorts is one of the fastest growing full-service hotel investment, management and development companies in the United States. The company currently manages more than 5,000 rooms for multiple owners in the 11 states and the Caribbean. For more information, please visit www.prismhotels.com.

About Intercontinental Hotels Group
InterContinental Hotels Group PLC (IHG) of the United Kingdom [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 3,700 hotels and more than 558,000 guest rooms in nearly 100 countries and territories around the world. IHG owns a portfolio of well recognized and respected hotel brands including InterContinental® Hotels & Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites® and Hotel Indigo®, and also manages the world's largest hotel loyalty program, Priority Club® Rewards with over 33 million members worldwide.

The company pioneered the travel industry’s first collaborative response to environmental issues as founder of the International Hotels and Environment Initiative (IHEI). The IHEI formed the foundations of the Tourism Partnership launched by the International Business Leaders Forum in 2004, of which IHG is still a member today. The environment and local communities remain at the heart of IHG’s global corporate responsibility focus.

IHG offers information and online reservations for all its hotel brands at www.ihg.com and information for the Priority Club Rewards program at www.priorityclub.com.