IHG links with Novum to boost German presence

IHG Hotels & Resorts has signed a long term agreement that is set to double its hotel presence in Germany. A partnership with German operator Novum Hospitality will see Novum’s current portfolio and pipeline properties, totalling up to 119 hotels, convert to IHG brands over the next few years.

For IHG, the move will see it add around 52 hotels to its Holiday Inn brand, almost all in Germany. These are currently operated under Novum’s The Niu brand, and the aim is to promote the hotels under a brand collaboration that retains the Niu name as well as allowing them to be part of the Holiday Inn brand offering.

Switching brands

A further 56 hotels that currently operate under Novum’s Yggotel, Select and Novum brands will transfer to IHG’s new conversion brand, Garner. Finally, a tranche of 11 extended stay hotels, currently trading as Acora Living the City, will be rebranded under IHG’s internationally established long stay brand, Candlewood Suites.

Novum has 111 of its hotels in Germany, a further eight are in Austria, with a further few in the Netherlands and the UK. The hotels will operate under a 30 year franchise agreement, wth IHG contributing key money to support Novum’s conversions. The aim is to transition the hotels over time, having them all rebranded by the end of 2028. The additions will, overall, add 1.9% to IHG’s global portfolio. The agreement allows for further hotels to be developed jointly by the partners, and added in future.

Elie Maalouf, CEO of IHG, commented: “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.”

Partnering with a global major

For David Etmenan, CEO of Novum, partnering with IHG is all about linking the family-run business with a stronger marketing presence: “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.”

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