On 23 October 2006, All Nippon Airways (ANA) and InterContinental Hotels Group (IHG) announced the signing of a hotel operating joint venture to create the leading hotel operating company in Japan, the world's second largest hotel market.

The joint venture - to be named IHG ANA Hotels Group Japan - will officially commence on 1 December 2006. IHG was selected as ANA's partner after a highly competitive process. The strength of IHG's family of brands, robust growth pipeline, international outlook and established operating systems made it the preferred partner for ANA, while ANA's reputation for high quality standards and service made it an attractive partner for IHG. Both companies share corporate values and strategic objectives, including a focus on China, which will help create a strong platform for a successful long-term partnership.

ANA will sign new management contracts with IHG ANA Hotels Group Japan for its 13 owned and leased hotels (4,943 rooms). These hotels will over time re-brand to one of the three co-brands created for Japan - ANA-InterContinental, ANA-Crowne Plaza and ANA-Holiday Inn. The flagship ANA Hotel Tokyo will be the first to be co-branded in April 2007 as the ANA-InterContinental Tokyo. The remaining 12 hotels will be co-branded over the following 18 months.

In addition, the joint venture will continue to operate ANA Hotels & Resorts' other 18 hotels (4,127 rooms) under management contracts, franchise agreements and marketing referral agreements for third party owners, who will also be offered the opportunity to enjoy the benefits of co-branding. IHG currently operates 11 hotels in Japan (3,100 rooms), which, combined with IHG ANA Hotels Group Japan's 31 hotels, gives a combined estate of 42 hotels with more than 12,000 rooms.

ANA Hotels & Resorts' 500,000 ANA Hotel Members will be given the opportunity to become members of IHG's Priority Club Rewards, which is the world's largest hotel loyalty programme with more than 28 million members worldwide. In addition, ANA will sign up as Priority Club Rewards' global airline partner. With effect from 1 November, ANA Mileage Club members will be able to start earning air miles when staying at IHG hotels worldwide.

IHG Chief Executive Andrew Cosslett said, "This deal marks another significant step for IHG as we continue to develop our brands throughout Asia. We are delighted to be in partnership with ANA, which has a reputation for high standards and quality of service. This joint venture will turn IHG ANA Hotels Group Japan into the country's leading hotel operator. It is consistent with our strategy of expanding our presence in key markets and makes IHG the first international hotel company with a large scale, multi-brand presence in Japan. We believe that all three co-brands - ANA-InterContinental, ANA-Crowne Plaza and ANA-Holiday Inn - will benefit significantly from the arrangement and collectively have great potential to become the first choice in Japan for our guests, our owners and our people."

ANA President and CEO Mineo Yamamoto said, "This is a great day for ANA Hotels and Resorts. Our joint venture with InterContinental Hotels Group, one of the world's most well-known and prestigious hotel companies, will bring our hotel guests the benefits of enhanced hotel operations under powerful co-brands and will enable our employees to take advantage of truly global training and personal development programs. In addition, our hotel owners will enjoy the benefits of industry-leading hotel operating systems and our shareholders will benefit from the value that comes from working with a global partner. This is a superb platform from which to strengthen our hotel business, grow the co-brands and develop our people, in order to benefit our guests, our shareholders, our employees and our business partners in Japan. ANA and IHG look forward to building a successful long term partnership and exploring opportunities for other strategic alliances."