IHG Hotels & Resorts (IHG) and NOVUM Hospitality have entered into a strategic, long-term partnership that is set to significantly increase IHG’s portfolio in Germany. The agreement will see the introduction of over 200 IHG-branded hotels across nearly 100 German cities through a collaboration with NOVUM’s Holiday Inn – the niu brand and the European launch of IHG’s Garner and Candlewood Suites brands.
NOVUM Hospitality, a prominent private hotel operator in Germany owned by David Etmenan, will partner with IHG to enhance its position in the midscale and upper midscale market. The key components of the agreement include:
- A projected 108 operational NOVUM hotels (15,334 rooms) and 11 hotels in development (2,369 rooms) are planned to be integrated into IHG’s system by 2028, with the majority of conversions taking place over the next two years. This will result in an increase of up to 1.9% in IHG’s global system size.
- Fifty-two existing and pipeline hotels will become part of IHG’s network through a unique collaboration between Holiday Inn and the niu, merging the niu‘s local presence with Holiday Inn’s global brand recognition. NOVUM’s other brands, including Yggotel, Select, and Novum, will transition to IHG’s new midscale brand, Garner, while the acora Living the City brand will be rebranded as Candlewood Suites.
- IHG will receive franchise fees following the phased conversion of existing properties and the opening of new hotels. The company will also collect assessments for its System Fund, which supports the operation of IHG One Rewards, as well as marketing and reservation services.
- The agreement grants IHG exclusivity for future NOVUM Hospitality hotels to join its brands and system, with a shared goal of developing additional properties.
- The 30-year agreement includes options for renewal and extends across 111 NOVUM Hospitality properties in Germany and a few others in Austria, the Netherlands, and the UK.
Germany’s robust hotel market, bolstered by strong domestic travel and a high volume of international outbound travelers, presents a significant opportunity for IHG’s expansion. The company’s growth strategy includes localized investments and enhancements to booking systems, as well as loyalty partnerships.
Elie Maalouf, CEO of IHG Hotels & Resorts, expressed: “We are thrilled to partner with NOVUM Hospitality, a respected entity, to amplify our presence in Germany, a key market for IHG. This alliance not only fortifies our domestic German platform but also increases our share of the extensive outbound travel market. The collaboration with Holiday Inn – the niu is set to deliver a contemporary and vibrant experience, merging a globally recognized brand with a local, quality-focused one. The European debut of Garner and Candlewood Suites marks an exciting chapter for IHG, and we are eager to grow alongside NOVUM Hospitality.”
David Etmenan, CEO and Owner of NOVUM Hospitality, added: “Joining forces with IHG, a global leader in hospitality, strengthens our position in Europe. This partnership allows us to focus on delivering exceptional experiences while benefiting from IHG’s renowned brand and global distribution network. The co-branding of the niu and Holiday Inn is a strategic move that enhances our global appeal and provides a solid foundation for our future endeavors.”
Additional Brand Insights:
- Holiday Inn, a celebrated brand and voted the most trusted hotel brand in US travel, has been offering exceptional stays since 1952, with over 1,200 hotels worldwide and an additional 250 in the pipeline.
- Holiday Inn – the niu is known for its distinctive design and memorable hospitality, combining neighborly service with individually tailored hotels that reflect their locale’s spirit.
- Garner, which debuted in the US in 2023 and has since expanded to Japan, Mexico, and Canada, is now franchise-ready across IHG’s EMEAA region. Aimed at value-seeking travelers, Garner is projected to reach over 500 open hotels in the next decade, primarily in the US.
- Candlewood Suites, IHG’s midscale extended stay brand, offers a comfortable environment for guests needing a home away from home, with a focus on efficiency and value for both guests and owners.
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