IHG strengthens its presence in Germany through a key agreement with NOVUM Hospitality

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Published on 16/04/24 - Updated on 17/04/24

IHG & Novum Hospitality

IHG Hotels & Resorts (IHG) and NOVUM Hospitality recently entered into an important partnership that will see IHG double its presence in Germany and expand its offering to more than 200 hotels in nearly 100 cities.

This collaboration marks an important milestone, introducing innovative concepts such as Holiday Inn - the niu collaboration and marking the European debut of IHG's Garner and Candlewood Suites brands.

As part of this comprehensive agreement, NOVUM Hospitality, led by David Etmenan, a leading figure in the German private hotel sector, will play a central role in IHG's ambitious expansion strategy. Here are the highlights:

  • IHG is expected to welcome up to 108 open hotels and 11 properties under development from NOVUM Hospitality between 2024 and 2028, adding approximately 15,334 rooms to its network.
     
  • An important aspect of the collaboration is that 52 hotels will join IHG through a distinctive partnership between Holiday Inn and niu, combining niu's superior mid-market brand with Holiday Inn's trusted reputation.
     
  • In addition, NOVUM Hospitality's other brands, including Yggotel, Select and Novum, will transition to IHG's new mid-market conversion brand, Garner, while the acora Living the City brand will transition to IHG's mid-market extended stay brand, Candlewood Suites.
     
  • The agreement provides a range of benefits to IHG, including franchise fees, standard valuations and key financial investments, contributing to 1.9% growth in its global network.
     
  • In addition, the partnership includes exclusivity agreements for future NOVUM Hospitality properties aligned with IHG brands, with renewal options.

With 111 properties in Germany and eight in Austria, the Netherlands and the UK, NOVUM Hospitality will adopt IHG brands and systems across its portfolio. This positions NOVUM Hospitality as one of IHG's largest franchisees globally, with the aim of leveraging IHG's business prowess and technology platforms to improve hotel performance, operations and guest experience.

The strong German hotel market, with over 450 million room nights by 2022 and significant domestic and international travel, offers lucrative growth prospects for IHG. The expanded presence in Germany is expected to bring benefits such as greater brand visibility, direct bookings and increased loyalty engagement for NOVUM Hospitality and other IHG partners. In addition, IHG's expansion is poised to drive the development of the brand in various locations, strengthening its position in the European hospitality landscape.

“We are delighted to collaborate with such a respected group as NOVUM Hospitality and double IHG’s presence in Germany, one of Europe’s largest hotel markets and a growth priority for our business. This agreement demonstrates the appeal to owners of our powerful enterprise and IHG’s success in attracting excellent conversion opportunities to grow our system size. It also creates a strong domestic German platform to increase demand and brand awareness, as well as capture a larger share of the millions of outbound trips made each year across Europe and beyond.

We’re excited to bring a modern, bold and dynamic experience to market with our Holiday Inn - the niu collaboration, which pairs our world-famous Holiday Inn brand with a high-quality local brand that has an excellent, largely newly-built estate. Equally, bringing Garner to Europe in such a critical market as Germany is a great moment, as is taking Candlewood Suites outside of the Americas for the first time. Both IHG and NOVUM Hospitality share a deep commitment to true hospitality, quality and growth, and we look forward to expanding together in the years to come.” - Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts

“Partnering with IHG, one of the world’s leading hotel companies, equips our family-run business with the firepower needed to fortify our market presence across Europe. This collaboration enables us to concentrate on delivering exceptional hotel experiences while leveraging the globally acclaimed brand recognition of IHG. Forging a co-brand between the niu and Holiday Inn sees two perfectly complementary brands come together, enhancing our appeal to guests on a global scale. Accessing IHG’s state-of-the-art global distribution network provides us with enhanced sales and revenue capabilities, ensuring sustained commercial success while retaining full flexibility and independence for NOVUM Hospitality, as the company remains in our ownership entirely.

Beyond the strategic advantages, the alignment of our values and principles throughout the negotiation process with IHG underscores the compatibility of our alliance. We deeply value the respect and consideration accorded to our the niu brand and eagerly anticipate the promising future that lies ahead in our joint endeavours.” - David Etmenan, Chief Executive Officer and Owner, NOVUM Hospitality

Expansion of the Garner brand

The collaboration will enable IHG Hotels & Resorts to amplify the growth of its latest mid-market conversion brand, Garner Hotels, now expanding into IHG's Europe, Middle East, Asia and Africa (EMEAA) region and introducing 56 Garner hotels open and under construction in the country.

This expansion marks an important step towards Garner's ambitious goal of exceeding 500 hotels over the next decade, and reaching 1,000 hotels within the next 20 years.

Garner is designed to offer owners flexibility and solid returns, while providing guests with a quality experience at an attractive price. With three operational properties and 14 hotels under construction around the world, including the US and Japan, Garner aims to become a popular brand for owners seeking profitable opportunities in the mid-market segment.

The growing interest in conversions underlines IHG's commitment to offering owners higher returns and lower pre-opening costs, enabling a rapid transition to operational status. Owners also benefit from access to IHG's resources, including its digital capabilities, global sales network, proven distribution systems and the IHG One Rewards loyalty programme.

“By introducing Garner to markets across EMEAA, we’re offering owners an attractive new option in the midscale segment, while driving incremental growth as we continue to build and leverage the strong and established footprint of our highly differentiated brand portfolio.” - Kenneth Macpherson, Chief Executive Officer, Europe, Middle East, Asia & Africa

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