Holiday Inn 2004 Annual Report Download - page 68

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37 PRINCIPAL OPERATING SUBSIDIARY UNDERTAKINGS
InterContinental Hotels Group PLC is the beneficial owner of all
(unless specified) of the equity share capital, either itself or
through subsidiary undertakings, of the following companies:
Corporate activities
Six Continents PLC (note a)
Hotels
InterContinental Hotels Limited
InterContinental Hotels Group Operating Corporation
(incorporated and operates principally in the United States)
InterContinental Hotels Group Services Company
InterContinental Hotels Group (UK) Limited
Holiday Inn Limited
Soft Drinks
Britannia Soft Drinks Limited (47.5% Six Continents Investments
Limited, 23.75% Whitbread PLC, 23.75% Allied Domecq PLC,
5% PepsiCo Holdings Limited) (note b)
Britvic Soft Drinks Limited (100% Britannia Soft Drinks Limited)
Robinsons Soft Drinks Limited (100% Britannia Soft Drinks Limited)
note a Shares held directly by InterContinental Hotels Group PLC.
note b The Group exercises dominant influence over Britannia Soft Drinks
Limited which is, accordingly, treated as a subsidiary undertaking.
note c Unless stated otherwise, companies are incorporated in Great Britain,
registered in England and Wales and operate principally within the
United Kingdom.
note d The companies listed above include all those which principally affect
the amount of profit and assets of the Group.
38 POST BALANCE SHEET EVENTS
On 28 February 2005, IHG announced the acquisition by Strategic
Hotel Capital, Inc. of 85% interests in two hotels in the United
States. IHG will receive approximately $287m in cash before
transaction costs, based upon a total value for both hotels of
$303.5m, $12m in excess of net book value. This transaction is
expected to complete in the first half of 2005. IHG will continue
to manage these hotels under a 20 year management contract
with three options to extend for a further ten years each.
On 10 March 2005, IHG announced the sale of 73 hotels in the
United Kingdom. Proceeds totalled £1.0bn before transaction
costs, £22m below net book value. This transaction is expected
to complete in the second quarter of 2005. IHG will continue to
manage 63 of these hotels under a 20 year management contract
with two consecutive options to extend the contract for a further
five years each. The remaining ten hotels will be under a
temporary management agreement with IHG.
Notes to the financial statements
66 InterContinental Hotels Group 2004