Malaysia Tourism Boosts Sabah Growth As IHG Unveils Two New Hotels In Kota Kinabalu And Tawau

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Malaysia Tourism is poised for stronger growth with IHG Hotels & Resorts’ development in Sabah with two new hotels in Kota Kinabalu and Tawau. IHG Hotels & Resorts has agreed to a two-hotels portfolio with King Park Hotel Sdn. Bhd., a subsidiary of Hass Enterprise Sdn. Bhd., a privately owned company based in Sarawak, to bring new hotel experiences to Sabah. New hotel developments will answer the growing needs of visitors to Sabah and provide new business opportunities.

The partnership represents two major milestones for IHG’s growth strategy in Malaysia, including the introduction of its franchise model in the country and the debut of Garner hotels, IHG’s midscale conversion brand, in the Malaysian market.

Under the agreement, the 202-room Garner Hotel Kota Kinabalu will be converted from the existing King Park Hotel Kota Kinabalu. The property will reopen in phases, with 106 rooms scheduled to launch in 2027, followed by an additional 96 rooms in 2029.

The partnership will also introduce the 140-room Holiday Inn Express Tawau, marking IHG’s first hotel presence in Tawau. The property will undergo a major refurbishment of the existing King Park Hotel Tawau before opening in 2028 under the Holiday Inn Express brand.

The agreement strengthens IHG’s expansion across Malaysia by bringing more internationally recognised accommodation options to key destinations in Sabah while supporting the company’s broader growth through strategic partnerships and conversion opportunities.

Bryan Chan, Vice President, Development, South East Asia & Korea, IHG said: “The introduction of franchising marks an important milestone in IHG’s growth across Southeast Asia, enabling us to unlock more conversion and repositioning opportunities across both independent and internationally branded hotel assets.

“We are delighted to launch IHG’s franchise model in Malaysia with a two-hotel portfolio agreement with King Park Sdn. Bhd. As experienced hotel owners with deep local market expertise, they are the ideal partner for our first two franchise hotels and will help create a strong foundation for long-term success.

“This agreement also introduces Garner hotels to Malaysia. Garner Hotel Kota Kinabalu will increase our open and pipeline presence in Kota Kinabalu from one to five hotels, while Holiday Inn Express Tawau gives IHG its first presence in the city and strengthens our footprint across Sabah’s growing tourism corridor. These are great additions to IHG’s Malaysia portfolio and reinforces our commitment to delivering high-quality stay experiences in the premium midscale segment.”King Park Hotel Sdn. Bhd spokesperson said: “We are excited to partner with IHG to introduce the first Garner in Malaysia and the first internationally branded hotel in Tawau. Kota Kinabalu continues to attract robust international and domestic travel, underpinned by its position as Sabah’s gateway to leading leisure destinations such as Mount Kinabalu and Tunku Abdul Rahman Marine Park. Tawau is a key commercial centre on the state’s east coast and its accessibility to world class diving locations and nature attractions presents Tawau with significant growth potential.

“We believe aligning these hotels with globally recognised brands and leveraging on IHG’s global enterprise and distribution platforms will strengthen their market positioning and unlock new opportunities for growth. We look forward to welcoming travellers to these two cities when they open.”

With more than 110 hotels already operating worldwide, Garner Hotel Kota Kinabalu will become part of IHG’s fastest-growing new brand. Created for travellers looking for reliable quality at an affordable price, Garner focuses on delivering the essential elements that guests value most while providing hotel owners with a flexible and conversion-friendly operating model. Guests staying at the property can expect comfortable accommodation, restful stays, quality breakfast options, and destination-inspired touches that showcase the local identity of Kota Kinabalu.

Meanwhile, Holiday Inn Express Tawau will join IHG’s rapidly expanding Essentials brand, which has more than 3,300 open hotels and over 660 properties in development worldwide. Built around the concept of simple and smart travel, Holiday Inn Express caters to both business and leisure travellers by offering comfortable spaces to relax and recharge, along with its signature complimentary Express Start™ breakfast experience.

The two new hotel agreements will further strengthen IHG’s footprint in Malaysia, expanding its portfolio to more than 20 operating and pipeline hotels across major city and resort destinations, including Johor Bahru, Kuala Lumpur, Kuching, Melaka and Penang. IHG’s upcoming Malaysian developments also include InterContinental Penang Resort, which will transform the former Mutiara Beach resort, and voco Muar, marking the second voco hotel planned for the country.