Six Continents Hotels� acquisition of the UK Posthouse Hotels was today applauded by the global financial community as the hotel portfolio Deal of the Year at the annual International Hotel Investment Forum (IHIF), in Berlin.

The Six Continents Hotels deal was one of four short-listed including the Nomura/Le Meridien, Hilton/Scandic and Royal Bank of Scotland/Hilton transactions. A panel of judges from all sectors of the hotel industry including operators, owners, financiers and consultants were not only impressed by the attractive multiple and the strategic fit into its UK Holiday Inn business, but also by the sheer simplicity of Six Continents Hotels� deal structure.

Six Continents Hotels made its award-winning transaction in April 2001 when it announced that it had acquired the entire business of Posthouse from Compass Group PLC for �810 million, a multiple of 7.9 times EBITDA. The 79 former Posthouse mid-scale hotels have 12,300 rooms and many are located at key motorway junctions, in city centres and at airports with a particularly strong network in the southern region of the UK. Between 1988 and 2001 the Posthouse portfolio had benefited from more than �200 million of investment.

The majority of the Posthouse hotels identified for re-branding have successfully been converted to the Holiday Inn brand, with the last conversion scheduled to take place on the 28 March 2002. The seven hotels earmarked for disposal at the time of acquisition have successfully been sold. The re-branding has created a market-leading position for Holiday Inn in the UK with almost 100 hotels. These now benefit from a globally recognised brand, worldwide reservations system and loyalty programme. At the time of acquisition Six Continents Hotels announced plans to invest �75 million of expansionary capital to upgrade the estate to Holiday Inn standards over the next three years, and these plans are now well advanced.

David Bland, managing director Six Continents Hotels Europe, Middle East and Africa, paid special tribute to Frank Croston, area president Six Continents Hotels UK & Ireland and his team, for the speed at which the hotels had been integrated within Holiday Inn UK. He went on to say, �This is a resounding endorsement of our strategy to further strengthen the leading position of Holiday Inn through increased distribution in key European markets. And we�re delighted that the acquisition has been recognised by the international investment community.�

Almost 1,000 delegates attended IHIF this year making it Europe�s largest hotel forum. The IHIF Deal of the Year awards were presented at a ceremony at the Hotel Inter-Continental Berlin today by Michael Hirst, consultant Insignia Hotels and Bob Lewis, director of International Hotel Property Services for PKF.

ENDS MEDIA INFORMATION Luke Starr or Jane Morey Prue MacSween & Associates (+61 2) 9327 4333