The three-year deal, effective this month, sees the hotel group offer competitive room rates and food and drinks discounts to more than 2.5 million Saga customers.
The offers will be available in Crowne Plaza, Holiday Inn and Holiday Inn Express hotels across the UK and Ireland.
Jane Bednall, IHG commercial vice-president, said: "The Saga deal is testament to the strength and quality of our brands and will help us continue to grow our leisure guest base in 2010."
Susan Hooper, Saga Holidays chief executive officer, added: "This new partnership is excellent news for Saga Holidays customers when they holiday in the UK and Ireland for short breaks. We stay committed to giving our customers the best prices possible and look forward to a successful partnership with InterContinental Hotels Group."
By Janie Stamford
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