LONDON, April 15, 2024 /PRNewswire/ -- 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.
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.
About IHG Hotels & Resorts
IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a
global hospitality company, with a purpose to provide True
Hospitality for Good.
With a family of 19 hotel brands and IHG One Rewards, one of the
world's largest hotel loyalty programmes, IHG has over 6,300 open
hotels in more than 100 countries, and a development pipeline of
over 2,000 properties.
- Luxury & Lifestyle: Six Senses Hotels
Resorts Spas, Regent Hotels & Resorts, InterContinental
Hotels & Resorts, Vignette Collection, Kimpton Hotels &
Restaurants, Hotel Indigo
- Premium: voco hotels, HUALUXE Hotels &
Resorts, Crowne Plaza Hotels & Resorts, EVEN Hotels
- Essentials: Holiday Inn Express, Holiday Inn
Hotels & Resorts, Garner hotels, avid hotels
- Suites: Atwell Suites, Staybridge Suites, Holiday
Inn Club Vacations, Candlewood Suites
- Exclusive Partners: Iberostar Beachfront
Resorts
InterContinental Hotels Group PLC is the Group's holding company
and is incorporated and registered in England and Wales. Approximately 345,000 people work
across IHG's hotels and corporate offices globally.
Visit us online for more about our hotels and reservations and
IHG One Rewards. To download the IHG One Rewards app, visit the
Apple App or Google Play stores.
For our latest news, visit our Newsroom and follow us on
LinkedIn.
About NOVUM Hospitality
With a distinguished portfolio of over 150 hotels (incl. secured
pipeline), encompassing more than 20,000 rooms across 60 premier
locations throughout Europe, NOVUM
Hospitality is ranked among the biggest family-run hotel groups in
Germany. Founded in 1988 and
geared for growth since 2004, NOVUM Hospitality has been
successfully expanding under the visionary leadership of Chief
Executive Officer & Owner, David
Etmenan. The hotel portfolio comprises midscale and upper
midscale hotels in central locations run under acclaimed brands
such as the niu, Select Hotels, Novum Hotels, Yggotel and acora
Living the City. Additionally, NOVUM Hospitality proudly serves as
a franchisee for InterContinental Hotels Group, Accor, and Hilton.
The renowned Treugast Investment Ranking, an annual assessment of
the foremost hotel companies in Germany, awards NOVUM Hospitality with an 'A'
rating, underscoring their commitment to excellence and industry
leadership. www.novum-hospitality.com
Photo -
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