The strategic alliance allows IHG and Iberostar to join their forces and open together numerous resorts and all-inclusive hotels in the Caribbean, Americas, Southern Europe and North Africa.
IHG and Iberostar, a family-run business based in Palma de Mallorca, signed a long‑term commercial agreement for resort and all-inclusive hotels. Through this strategic alliance, Iberostar will retain 100% ownership, preserving its autonomy and values. Up to 70 hotels will be added to IHG’s system under the Iberostar Beachfront Resorts brand, which will become the 18th brand for IHG.
The alliance will boost IHG’s global system size by up to 3%. The first properties set to join the IHG system this December will give IHG guests increased choice in several locations including Mexico, the Dominican Republic, Jamaica, Brazil and the Canary Islands.
Further properties in Spain and other popular resort destinations in Southern Europe and North Africa are anticipated to join IHG’s system over the course of 2023 and 2024.
IHG has fewer than 20 resort properties in the countries where the Iberostar Beachfront Resorts properties are located. The agreement therefore significantly increases and broadens IHG’s resort footprint. The agreement has an initial term of 30 years and the option to renew for additional terms of 20 years upon mutual agreement.
The Iberostar Beachfront Resorts brand will be included in a new Exclusive Partners category in IHG’s brand portfolio, which will sit alongside its Suites, Essentials, Premium and Luxury & Lifestyle categories.
A pipeline of six further Iberostar Beachfront Resorts properties, representing 3.000 rooms, is also expected to be added to IHG’s pipeline. This pipeline will increase as IHG and Iberostar work together to grow the brand’s footprint through the long-term commercial agreement.
As part of the agreement, IHG will work with Iberostar to create opportunities for joint sustainability initiatives that align with IHG’s 2030 Journey to Tomorrow responsible business plan.
As we continue to expand the footprint of our world‑famous brands, we are always looking at exciting, sustainable growth opportunities in areas that can further enhance our offer for guests and owners. Guests have told us of their wish for increased choice of resort and all-inclusive destinations within our brand portfolio. We are delighted to address that by working with such a well-respected, experienced and like-minded partner as Iberostar, and to see more amazing hotels join our system that continues IHG’s growth in so many of the world’s most attractive markets and destinations. Iberostar has successfully developed a leading presence in beachfront and all-inclusive properties in the Caribbean, Americas, Southern Europe and North Africa over many decades, and we are excited about the opportunities to further grow the brand’s footprint together. This agreement increases IHG’s system by up to 3%, which helps to deliver on our ambitions for system growth. We continue to explore further opportunities for growth with exclusive partners, demonstrating the strengths and attractiveness of IHG’s enterprise platform.
Keith Barr, Chief Executive Officer, IHG Hotels & Resorts
With this agreement, we set the path to continue the outstanding growth that began 40 years ago with the creation of the Iberostar brand and which has positioned us among the top resort brands in the world. The alliance with IHG combines our strengths, represents a decisive step forward in the distribution of Iberostar’s beachfront resorts, and reinforces our position as a benchmark in responsible tourism. By working together we will grow our portfolio and we are really looking forward to hosting IHG loyalty members in our collection of premium and luxury beachfront resorts and all-inclusive properties.
Sabina Fluxá, Vice-Chairman and Chief Executive Officer, Iberostar Group