IHG Hotels & Resorts and NOVUM Hospitality Sign Agreement to Double IHG’s Presence in Germany, Launch Holiday Inn – the niu Collaboration, and Introduce Garner and Candlewood Suites Brands

IHG Hotels & Resorts (IHG) and NOVUM Hospitality have announced a long-term agreement that will see IHG’s presence in Germany double to over 200 hotels in nearly 100 cities. The expansion is due to a collaboration with the Holiday Inn – the niu brand and the European introduction of IHG’s Garner and Candlewood Suites brands.

The agreement with NOVUM Hospitality, one of Germany’s largest private hotel operators, will make IHG a leading player in the midscale and upper midscale market. Key components of the agreement include:

– The addition of up to 108 NOVUM Hospitality open hotels and 11 hotels under development to IHG’s system between 2024 and 2028. This will increase IHG’s global system size by up to 1.9% over the coming years.
– A total of 52 open and pipeline hotels will join IHG through a collaboration between Holiday Inn and the niu, NOVUM Hospitality’s stylish, flagship upper midscale brand. Other NOVUM Hospitality brands, including Yggotel, Select and Novum, will convert to IHG’s new midscale conversion brand, Garner, and the acora Living the City brand will convert to IHG’s midscale extended stay brand, Candlewood Suites.
– Under the agreement, IHG will receive franchise fees after the phased conversion of existing properties and upon the opening of the hotels under development.
– The agreement includes an exclusivity arrangement for future NOVUM Hospitality hotels to join IHG’s leading brands and enterprise system, with an ambition to jointly develop further hotels over time.
– The agreement has a term of 30 years and the option to renew for additional terms.

111 of NOVUM Hospitality’s properties are in Germany, with the remaining eight in Austria, the Netherlands and the UK. Germany is one of Europe’s largest hotel markets, with strong domestic consumption, inbound and outbound travel.

IHG’s growth in Germany will be supported by continued investment in building localised commercial platforms, such as the recent introduction of loyalty partnerships and improved booking systems. IHG expects its increased scale to bring significant benefits to NOVUM Hospitality and other IHG owners, including higher brand awareness, direct bookings and loyalty engagement.

NOVUM Hospitality will adopt IHG brands and systems for this entire portfolio, becoming one of IHG’s largest franchisees globally.

Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, expressed excitement about the collaboration with NOVUM Hospitality and the opportunity to double IHG’s presence in Germany. David Etmenan, Chief Executive Officer and Owner, NOVUM Hospitality, also expressed enthusiasm about the partnership and the potential for growth and success it brings.

Source: ihgplc.com

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