IHG Hotels & Resorts (IHG) has signed an agreement with NOVUM Hospitality to double its properties in Germany to more than 200 hotels in almost 100 cities through brand collaborations and debuts.
IHG will welcome 108 NOVUM Hospitality hotels (15,334 rooms) and 11 hotels under development (2,369 rooms) to its system between 2024 and 2028.
Conversions are beginning in 2024 with the majority expected to take place by early summer 2025. 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 flagship upper-midscale brand.
NOVUM Hospitality's other brands with 56 open and pipeline hotels, Yggotel, Select and Novum, will convert to IHG's new midscale conversion brand, Garner. The acora Living the City brand, with 11 open and pipeline hotels, will convert to IHG's midscale extended stay brand, Candlewood Suites.
IHG will receive franchise fees after the phased conversion of existing properties and upon the opening of the hotels under development. 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 30-year agreement includes an exclusivity arrangement for future NOVUM Hospitality hotels to join IHG's brands and enterprise system, with an ambition to jointly develop further hotels over time.
111 NOVUM Hospitality properties are in Germany, with the remaining eight in Austria, the Netherlands and the UK.
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 CEO Elie Maalouf calls Germany “one of Europe's largest hotel markets and a growth priority for our business.”
