Unfortunately, according to the T&C regs, neither of you should get the points:

Limits on Points for Stays.

Points are not issued for stays at the following reduced room rates (“Non-Qualifying Room Rates”; “Non-Qualifying Stay”): net wholesale individual and group rate, package rate, employee discount rate, crew rate, seasonal worker/crew rate, 50% travel club discount rate, industry discount rate, distressed passenger rate, Priority Club Reward Nights/Airline Hotel Reward rate, most rates booked through most third party web sites, complimentary hotel stays or any other rates not defined as a Qualifying Room Rate. Except as expressly set out otherwise in these Terms and Conditions, Priority Club points are not awarded for fractions of a U.S. dollar spent, or for dollars spent on tax, VAT, GST, service charges, gratuities or hotel incidentals. Charges not billed to your room, gift shop purchases, and meeting charges, other than Priority Club Meeting Rewards, will not be eligible for points. You must have stayed in the room and paid for it in full to receive Priority Club points. Only one room will be credited per member per night; however, at U.S. and Canadian hotels (except InterContinental), you can collect points or miles on all Eligible Charges for multiple hotel rooms (less than 10), provided those rooms are used in conjunction with your stay at the same hotel, and your Priority Club Rewards member number is recorded on each reservation, or the charges from those multiple room reservations are referred to on the hotel room bill associated with your reservation. Only the member whose name is on the reservation record will be awarded points and will be awarded Qualifying Night credit toward achieving Elite-level status or other promotional goals. Only one Qualifying Night credit, per member, per night will be awarded regardless of the number of reservations booked and paid for by the member. Points and/or Qualifying Night credit are not awarded for "no shows" even if the room is paid for in full. Priority Club points or miles will not be issued if your room is paid for by a trade group, association or company as part of a convention or group business meeting (10 rooms or more). If you stay at an IHG hotel under the terms of a contract or group commitment, you will not be eligible to receive points.

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