STRICTLY PRIVATE AND CONFIDENTIAL IHG Rewards Club Members Study Top Line Findings Among IHG Club Non-ECMs November 25, 2013

STRICTLY PRIVATE AND CONFIDENTIAL Background and Objectives 2 Intercontinental Hotel Group (IHG) is comprised of nine brands spanning 4,600 hotels in nearly 100 countries. The different brands represent a broad range of marketing strategies, from five-star properties catering to upscale guests to those targeted to budget-minded business travelers and value-oriented leisure travelers. IHG maintains a Rewards Club program which allows its members to accrue points or miles through IHG hotel stays as well as various dining, travel and retail partners. IHG also offers a Rewards Select Visa card (issued by Chase) which allows its card holders additional opportunities to accrue points or miles through a broader array of purchase activities. While the IHG program is one of the largest rewards program in the world, its members tend to be less active than members of some other hotel loyalty programs -- and the “take rate” of the IHG Rewards credit card among Rewards Club members is below that for cards issued by other hotel chains (such as Marriott) among its loyalty club members. The objective of this research is to gather the information necessary to help formulate programs designed to improve the performance of the IHG consumer loyalty effort across BOTH key vehicles of the program – the IHG Rewards Club AND the IHG Rewards Credit Card.

STRICTLY PRIVATE AND CONFIDENTIAL Method 3 Online interviews were conducted with 3,694 members of the IHG Rewards Club – 1,984 owners of the IHG Rewards Credit Card and 1,710 non-owner prospects for the card. Respondents were invited by IHG via to participate in a 30 minute survey for which they would receive 2,500 IHG points. Approximately 225,000 invitations were ed on the evenings of November 13 and 14, The overall response rate was high, at 8%, resulting in survey completion by November 15, In order to be eligible for the survey Club members had to own a general purpose credit card and spent at least one night in a hotel in the past 12 months. A maximum quota was set among non- ECM members which allowed no more than half that sample to be “definitely” or “very” unlikely openers of a new credit card in the next 24 months. Quotas were established for readable samples of IHG Select and Legacy ECMs as well as IHG card prospects who were defined based on their involvement with IHG Rewards as follows: 1-3 IHG hotel stays Club 4+ stays Gold Platinum Ambassador Results for total ECMs and non-ECMs were each weighted to reflect the true proportion of each segment within those universes among the membership as a whole, as follows: ECMs Non-ECMs Legacy 55.4%1-3 IHG stays 71.6%Gold 14.3% Ambassador.4% Select 44.6%Club 4+ stays 6.4%Platinum 7.3%

STRICTLY PRIVATE AND CONFIDENTIAL Detailed Top Line Findings Among IHG Club Non-ECMs 4 4

STRICTLY PRIVATE AND CONFIDENTIAL Hotel Business Stays in Past 12 Months -- 1 or More Stays Among IHG Club Non-ECMs Q3a IHG Hilton Marriott Starwood 5 IHG properties are the overwhelming favorites among non-ECMs seeking a business hotel. The Holiday Inn brands attract nearly as many guests as all Hilton hotels combined and all Marriott hotels combined. n=1,710 Holiday Inn Express Holiday Inn Crowne Plaza Candlewood Suites Hilton Hampton Inn Hilton Garden Inn Embassy Suites Doubletree Marriott Courtyard Fairfield Inn Sheraton

STRICTLY PRIVATE AND CONFIDENTIAL Hotel Leisure Stays in Past 12 Months -- 1 or More Stays Among IHG Club Non-ECMs Q4a IHG Hilton Marriott Starwood 5 n=1,710 Holiday Inn Express Holiday Inn Crowne Plaza Candlewood Suites Hampton Inn Hilton Hilton Garden Inn Embassy Suites Doubletree Marriott Courtyard Fairfield Inn Sheraton For leisure travel, non-ECMs are significantly more likely to stay at an IHG hotel than at a competitor’s. Holiday Inn Express and Holiday Inn again are the most favored properties.

STRICTLY PRIVATE AND CONFIDENTIAL IHG Segments Based on Typing Tool Among IHG Club Non-ECMs 7 Non-ECM Club survey participants match IHG’s segment typology based on their ratings on the importance of 25 hotel benefits. Six in ten non-ECMs fall into a Leisure only segment, three in ten into a Business only segment and the balance into a combined Business/Pleasure segment. n=1,710 Business Productivity Family Holiday Leisure Stopover Wellness Romantic Getaway Mixing Business with Pleasure Business Stopover Short Break Experience Building Business Interactions 1 1 Total Leisure Segments = 61% Total Business Segments = 29% Business & Pleasure = 10%

STRICTLY PRIVATE AND CONFIDENTIAL Total and Elite Membership in Key Travel Loyalty Programs Among IHG Club Non-ECMs Q6a/6b Hotel Programs Airline Programs 8 A large proportion of IHG Club non-ECMs belong to other loyalty programs, especially Hilton’s. 21% claim they are at the Elite level with IHG, and the same proportion say they have reached Elite status with Hilton, Marriott, United and Delta as well. % Members Are Elite Status n=1,710 Total Membership

STRICTLY PRIVATE AND CONFIDENTIAL Travel Loyalty Program Involvement Among IHG Club Non-ECMs Q6a/6e/6f Hotel Programs Airline Programs 9 n=1,710 IHG Club non-ECMs earn most of their reward units via hotel programs, especially IHG. Their primary program is clearly the one they use most often. IHG Hilton Marriott Starwood Total United Delta Southwest American Total 1 1 Most Points/Miles in P12M Primary Travel Loyalty Program

STRICTLY PRIVATE AND CONFIDENTIAL Value of Points/Miles in Key Travel Loyalty Programs (Rate 9,10/10) Among IHG Club Non-ECM Members of Each Program Q6c Hotel Programs Airline Programs 10 Just one in four non-ECMs consider their IHG points a good value, no different than feelings about Marriott points and Southwest miles among those who also belong to those programs. Other hotel points and airline miles are less likely to be considered a good value than IHG, Marriott and Southwest’s programs. (1071) (875) (717) (409) (596) (662) (545) (540)

STRICTLY PRIVATE AND CONFIDENTIAL Overall and Benefit Satisfaction with IHG Rewards Club -- % Rate 9 or 10/10 Among IHG Club Non-ECMs OVERALL SATISFACTION Q8/9 11 About one in three Club non-ECMs express high satisfaction with the IHG Rewards program. Key drivers of their satisfaction are “close in” hotel benefits such as free Internet, free breakfast, early check-in/check-out and convenient locations, as well as longer term based benefits such as no points expiration and ease of redeeming points. n=1,710

STRICTLY PRIVATE AND CONFIDENTIAL Number of Credit Cards Owned/Card Fees Among IHG Club Non-ECMs Q1b/1c Number of Cards Owned Card Fees 12 Non-ECMs own, on average, 3 credit cards and nearly all of them are no fee. Just one in eight of these club members pay a $100+ annual fee for their credit cards. 1 card 29% 2 cards 23% 3 cards 15% 4 cards 18% 5+ cards 16% Average # Cards Owned = 3.19 n=1,710

STRICTLY PRIVATE AND CONFIDENTIAL Credit Card Ownership Among IHG Club Non-ECMs Q11 13 Half of Club non-ECMs own a Bank credit card and about one in four own an airline and/or non-hotel/non-airline American Express card. Just one in eight claim to own a hotel card. n=1,710 Any Bank Cards Any Airline Cards AmEx (Non- airline) Any Hotel Cards

STRICTLY PRIVATE AND CONFIDENTIAL Likelihood Would Consider Acquiring Specific Hotel Credit Cards (% Rate 6-10) Among Card Non-Owners Who Stayed at Same Branded Hotels in P12M IHG Rewards Club Card Marriott Rewards Premier Card Q14b Marriott Rewards Visa Signature Card Amex Hilton Hhonors Card Citi Hilton Hhonors Visa Signature Card Amex Starwood Preferred Guest Card Citi Hilton Hhonors Reserve Card Hyatt Credit Card 14 There appears to be little interest in acquiring an IHG Rewards Club credit card among non-ECMs who stayed at an IHG hotel in the past 12 months. Indeed, non-ECMs show little interest in ANY card offered by the hotels they frequented in the last year

STRICTLY PRIVATE AND CONFIDENTIAL 15 Aware of Name Change Unaware of Name Change Awareness of Change of Name Aware of Card Unaware of Card Awareness That IHG has a Credit Card Seven in ten IHG non-ECMs are aware of the change in the IHG loyalty club name. Far fewer claim to know that IHG offers a Rewards Club credit card.

STRICTLY PRIVATE AND CONFIDENTIAL Awareness of Hotels Associated with IHG Among IHG Club Non-ECMs Q15b 16 Nearly all IHG non-ECMs correctly associate IHG with the Holiday Inn properties; fewer are aware of the other hotels in the group. n=1,710

STRICTLY PRIVATE AND CONFIDENTIAL Stated Card Benefit Importance (Rate 9,10/10) Among IHG Club Non-ECMs Aware of IHG Card Q16b 17 When asked which benefits of the IHG Rewards Club credit card would be important to them, non-ECMs indicate that no points expiration is most important (note that this was one of the most compelling benefits of the IHG Club as well), followed by no annual fee in the first year of enrollment, no caps on points one can earn, and a free night each year. n=709

STRICTLY PRIVATE AND CONFIDENTIAL Likelihood Would Use One Credit Card Over Others Based on Specific Offers (Rate 9,10/10) Among IHG Club ECMs Q17 18 Club non-ECMs are most interested in a credit card that offers bonus points and cash back benefits, especially ones based on everyday purchases. They are least interested in benefits linked to monthly spending or drawings for prizes and free flights. n=1,710