IHG and NOVUM sign agreement that doubles IHG's hotel presence in Germany (2024)

IHG and NOVUM sign agreement that doubles IHG's hotel presence in Germany (1)

IHG Hotels & Resorts (IHG) and NOVUM Hospitality announce a long-term agreement that will double IHG's presence in Germany to more than 200 hotels in almost 100 cities through an exciting Holiday Inn – the niu brand collaboration and European debuts for IHG's Garner and Candlewood Suites brands.

The agreement with NOVUM Hospitality, one of Germany's largest private hotel operators, owned by David Etmenan, will make IHG one of the leading players in midscale and upper midscale, and includes the following key elements:

  • Up to 108 NOVUM Hospitality otpen hotels (15,334 rooms) and 11 hotels under development (2,369 rooms) are expected to join IHG's system between 2024 and 2028. Conversion of the hotels to IHG's system will happen in phases beginning in 2024, with the majority to take place over the next 24 months. 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 distinctive collaboration between Holiday Inn and the niu, NOVUM Hospitality's stylish, flagship upper midscale brand. This will combine the domestic presence of the niu with Holiday Inn's trusted reputation and global brand recognition to build a leading position in a key target market. NOVUM Hospitality's other brands, Yggotel, Select and Novum with 56 open and pipeline hotels will convert to IHG's new midscale conversion brand, Garner, and the acora Living the City brand with 11 open and pipeline hotels 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. Additionally, standard assessments will be received into IHG's System Fund, including those to cover the operation of IHG One Rewards, and marketing and reservation services. IHG will contribute key money capital expenditure that will reflect the phased conversion and timing of openings of this major portfolio of hotels.
  • 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.

A total of 111 NOVUM Hospitality 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. In 2022, there were over 450 million overnight stays in Germany, the second highest in Europe, and the country generated the highest number of international outbound travellers globally, around 100 million.

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, to capture both domestic demand and German outbound business. It will also drive the development of IHG's brands across more locations.

NOVUM Hospitality will adopt IHG brands and systems for this entire portfolio, becoming one of IHG's largest franchisees globally, with access to IHG's powerful commercial engine and technology platforms to drive hotel performance, efficient hotel operations and customer experience.

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

Further brand details:

  • Holiday Inn is an award-winning icon, voted the most trusted hotel brand in US travel. Providing leisure guests, business travellers and families with great places to stay since 1952, Holiday Inn has over 1,200 hotels globally and a further 250 properties in its pipeline.
  • Holiday Inn – the niu is a collaboration anchored in distinctive design and memorable hospitality. Already renowned for its commitment to neighbourly service and individually designed hotels inspired by their location, urban art and pop-culture, the niu is a fresh brand with a strong reputation. Combining it with Holiday Inn, alongside the award-winning IHG One Rewards loyalty programme and IHG's powerful enterprise platform, will further elevate the stay experience, grow market share by reaching new leisure and business guests, and accelerate expansion into new locations.
  • The first US Garner hotel opened in Seattle in late 2023 within three months of the brand being franchise-ready, and it has since launched in Japan, Mexico and Canada. With today's announcement, Garner is now franchise ready across IHG's Europe, Middle East, Asia and Africa (EMEAA) region. Garner is designed for travellers of all ages seeking a reliable, relaxed experience at an affordable price. It is becoming the leading choice for guests wanting great value stays at high–quality properties, and for owners seeking higher returns in the midscale space. IHG expects Garner to reach over 500 open hotels in the next 10 years and 1,000 hotels in the next 20 years in the US alone.
  • Candlewood Suites is IHG's midscale extended stay brand, providing a casual and friendly environment with everything guests need to live, work and relax while away from home. For over 25 years, the brand has provided great value for guests, while also allowing owners to benefit from a highly efficient operating model. Candlewood Suites has a combined open and pipeline estate of over 520 hotels across the Americas.

Related

IHG and NOVUM sign agreement that doubles IHG's hotel presence in Germany (2024)

FAQs

IHG and NOVUM sign agreement that doubles IHG's hotel presence in Germany? ›

IHG Hotels & Resorts (IHG) and NOVUM Hospitality announce a long-term agreement that will double IHG's presence in Germany to more than 200 hotels in almost 100 cities through an exciting Holiday Inn – the niu brand collaboration and European debuts for IHG's Garner and Candlewood Suites brands.

How many hotels does IHG have across all countries? ›

We're proud to be a truly global organisation, with more than 6,000 hotels in over 100 countries across the Americas, EMEAA and Greater China, plus a further 2,000 in our development pipeline.

What is the brand promise of IHG Hotels? ›

Good isn't good enough – we're committed to high levels of cleanliness. That means clean, well maintained, clutter free rooms. If this isn't what you find when you check-in then we promise to make it right.

What does the IHG stand for in IHG Hotels? ›

InterContinental Hotels Group (IHG), marketed as IHG Hotels & Resorts, is a British multinational hospitality company headquartered in Windsor, Berkshire, England.

What is the legal name for IHG Hotels & Resorts? ›

InterContinental Hotels Group and IHG® Hotels & Resorts are trade names describing the subsidiary companies of InterContinental Hotels Group PLC involved in the hotel business around the world.

Is IHG still operating in Russia? ›

We are now in the process of ceasing all operations in Russia consistent with evolving UK, US and EU sanction regimes and the ongoing and increasing challenges of operating there.

Who has the most international hotels? ›

1. Marriott International. At the top of the list, we find Marriott International, the global leader for the eighth consecutive year. With 30 brands, 8,691 hotels, and over 1.5 million rooms in 139 countries, it is the largest hotel chain in the world in 2024.

Does Marriott own IHG? ›

Marriott Bonvoy is Marriott's loyalty rewards program, and Marriott is an entirely separate company from IHG (the InterContinental Hotels Group), which has its own loyalty program, IHG Rewards.

What are 60000 IHG points worth? ›

How Much IHG Points Are Worth
Number of IHG PointsAverage Value
60,000$480
50,000$400
40,000$320
30,000$240
2 more rows
Jan 30, 2023

Who owns IHG Resorts? ›

The ownership structure of Intercontinental Hotels Group (IHG) stock is a mix of institutional, retail and individual investors. Approximately 3.29% of the company's stock is owned by Institutional Investors, 0.00% is owned by Insiders and 96.71% is owned by Public Companies and Individual Investors.

Is Ritz Carlton part of IHG? ›

The Pinnacle of Luxury Brands. Planning a honeymoon or a once-in-a-lifetime vacation? Brands like Ritz-Carlton (Marriott), St. Regis (Marriott), Park Hyatt (Hyatt), Bulgari (Marriott), and Regent (IHG) offer truly unique experiences.

Is IHG Hotels owned by Hilton? ›

IHG® One Rewards is the loyalty rewards program for the InterContinental Hotels Group, whereas the Hilton Honors loyalty rewards program is exclusive to Hilton Hotels and its affiliated properties. IHG and Hilton are not affiliated.

How many IHG points for a free night? ›

Get a Reward Night at our 6,000+ hotels and resorts around the world, starting at just 5,000 points. The best of both worlds, Points & Cash allows you to use some of your existing points plus buy the remaining points needed for your next getaway.

How many Holiday Inns are there worldwide? ›

With over 1,200 hotels worldwide, the Holiday Inn® brand is the most widely recognized lodging brand in the world.

Which IHG brand has over 1200 hotels globally? ›

Holiday Inn is an award-winning icon, voted the most trusted hotel brand in US travel. Providing leisure guests, business travellers and families with great places to stay since 1952, Holiday Inn has over 1,200 hotels globally and a further 250 properties in its pipeline.

How many hotels are there worldwide? ›

There are over 700,000 hotels and resorts in the world as of 2023. There are at least 17.5 million guest rooms across the world.

How many global destinations does the IHG One loyalty program cover? ›

Let your rewards take flight

Book a stay at one of our 6,000 destinations worldwide and fuel your next flight.

Top Articles
Latest Posts
Article information

Author: Catherine Tremblay

Last Updated:

Views: 6239

Rating: 4.7 / 5 (67 voted)

Reviews: 90% of readers found this page helpful

Author information

Name: Catherine Tremblay

Birthday: 1999-09-23

Address: Suite 461 73643 Sherril Loaf, Dickinsonland, AZ 47941-2379

Phone: +2678139151039

Job: International Administration Supervisor

Hobby: Dowsing, Snowboarding, Rowing, Beekeeping, Calligraphy, Shooting, Air sports

Introduction: My name is Catherine Tremblay, I am a precious, perfect, tasty, enthusiastic, inexpensive, vast, kind person who loves writing and wants to share my knowledge and understanding with you.