Intercontinental Hotels & Resorts and NOVUM Hospitality Announce Expansion in Germany with Over 200 New Hotels

Tuesday, April 16, 2024

IHG Hotels & Resorts (IHG) has entered into a long-term partnership with NOVUM Hospitality, a major private hotel operator in Germany owned by David Etmenan. This collaboration will more than double IHG’s footprint in Germany, expanding to over 200 hotels across nearly 100 cities. The expansion includes a new Holiday Inn and the niu brand collaboration, as well as the introduction of IHG’s Garner and Candlewood Suites brands to the European market.

This strategic agreement positions IHG as a dominant force in the midscale and upper midscale segments in Germany. Key components of the partnership include:

• Between 2024 and 2028, IHG anticipates integrating up to 108 operational NOVUM Hospitality hotels (comprising 15,334 rooms) and 11 hotels in development (2,369 rooms) into its portfolio. The transition of these hotels to IHG’s system will occur in stages starting in 2024, primarily within the next 24 months, potentially enlarging IHG’s global system size by as much as 1.9%.

• In a unique partnership, 52 operational and planned hotels will be brought into the IHG fold through a collaboration between Holiday Inn and NOVUM Hospitality’s upscale, flagship brand, the niu. This merger leverages the local popularity of the niu with the global recognition and trusted reputation of Holiday Inn, aiming to secure a dominant position in a crucial market. Additionally, 56 operational and planned hotels from NOVUM Hospitality’s other brands—Yggotel, Select, and Novum—will transition to IHG’s new midscale brand, Garner, while 11 operational and planned properties from the acora Living the City brand will shift to IHG’s midscale extended stay brand, Candlewood Suites.

• Under the terms of the agreement, IHG will collect franchise fees following the phased conversion of existing hotels and the inauguration of new developments. Standard contributions will also be made to IHG’s System Fund, which supports operations like IHG One Rewards, along with marketing and reservation services. IHG is set to provide essential capital expenditure reflecting the phased transitions and opening timelines of this significant hotel portfolio.

• The deal ensures exclusive rights for future NOVUM Hospitality hotels to join IHG’s leading brands and enterprise system, with a shared vision to further expand the hotel network over time. The agreement spans 30 years, with options to extend for additional periods.

NOVUM Hospitality operates 111 properties in Germany, with an additional eight located in Austria, the Netherlands, and the UK. Germany stands as a major player in the European hotel market, characterized by robust domestic demand and extensive travel activity. In 2022, Germany recorded over 450 million overnight stays, ranking second highest in Europe, and led the world with approximately 100 million international outbound travelers.

IHG plans to enhance its presence in Germany through sustained investments in local commercial platforms, including new loyalty partnerships and advanced booking systems. These initiatives are expected to substantially benefit NOVUM Hospitality and other IHG affiliates by increasing brand visibility, direct bookings, and loyalty program participation, thus capturing both domestic and outbound German markets. Additionally, this expansion will promote the growth of IHG’s brands in more regions.

As part of this strategy, NOVUM Hospitality will integrate IHG’s brands and systems into its entire portfolio, becoming one of IHG’s most significant franchisees worldwide. This partnership will leverage IHG’s extensive commercial capabilities and technological resources to boost hotel performance, operational efficiency, and customer satisfaction.

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.”

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