Tourexpi
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.
Elie Maalouf, Chief Executive Officer, IHG Hotels
& Resorts, said:
"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."
David Etmenan, Chief Executive Officer and
Owner, NOVUM Hospitality, commented:
"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."
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.
Image
Credit: © IHG
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