LONDON - Six Continents Hotels has announced a development agreement with Med Group, a leading Spanish development company, to build up to 20 new Express by Holiday Inn hotels in Spain. The new properties will be constructed in key cities across Spain including Madrid, Barcelona and Malaga within the next five years.

This latest deal reinforces the major expansion plans for Express by Holiday Inn throughout Europe with a strong focus on the UK, Germany and Spain. The Express by Holiday Inn brand has expanded rapidly since it first launched and is already one of Europe's fastest growing limited service hotels. The brand boasts a portfolio of over 100 hotels already opened with a substantial number in the pipeline.

Shane Harris, Vice President Development and Investments, Six Continents Hotels said: "We are delighted to announce this deal and to have formed such a key relationship for our expansion into Spain. The new partnership ties in very well with our overall development strategy for Express by Holiday Inn in Spain. Through this new relationship and other initiatives we intend to open over 60 Express by Holiday Inn hotels throughout Spain over the next seven years. Given the success we are having in the UK, where there are over 70 hotels open, we believe this is the ideal brand to capitalise on the growing domestic travel market within Spain."

Juan Couret, Hospitality Director, Med Group Investments said, " After extensive research, we are convinced that the "Express" brand offers the greatest growth potential in the Spanish hotel market, while maximising our return on investment. With this project, developing properties in key locations, we aim to achieve a leading position in the market. We are thrilled to have reached this partnership agreement with Six Continents Hotels."

Under the new agreement, Med Group will develop and own all the properties with Six Continents bringing their proven brand proposition and management expertise to the partnership.

Express by Holiday Inn offers a refreshing alternative for travellers who are looking for great value for money and many of the facilities normally found in larger hotels, such as well-equipped bedrooms and a welcoming lounge/bar area. Express by Holiday Inn offers competitive rates for both business and leisure travellers, and guests also enjoy a free continental breakfast.

Note to editors:

Six ContinentsSM Hotels, the hotel business of Six Continents PLC of the United Kingdom [LON:SXC, NYSE:SXC (ADRs)], owns, manages, leases or franchises more than 3,260 hotels and 514,000 guest rooms in nearly 100 countries and territories.

The following are some of the service marks owned by Six Continents Hotels, Inc., its parent, subsidiaries or affiliates: Holiday Inn®, Crowne Plaza®, Holiday Inn Express® in the Americas, Express by Holiday InnSM in Europe, the Middle East and Africa, Holiday Inn Select®, Holiday Inn Garden CourtSM, Holiday Inn SunSpree® Resort, Staybridge Suites® by Holiday Inn®, Holiday Inn Family SuitesSM Resort , Holidex®, Priority Club®, Inter-Continental® and Forum®. Centra® in Canada and Mexico; CentraSM in the U.S.; ParkroyalSM in the U.S. and Canada; Parkroyal® in Mexico.

Six Continents Club®, Six ContinentsSM, 6 ContinentsSM and the 6C logo are service marks of Six Continents PLC and used under license.

Six Continents Hotels, Inc. offers information and reservations capability on the Internet - , for Inter-Continental Hotels and Resorts, www.crowneplaza.com for Crowne Plaza Hotels and Resorts, www.holiday-inn.com for Holiday Inn hotels, for Holiday Inn Express hotels, www.staybridge.com for Staybridge Suites by Holiday Inn, and www.priorityclub.com.