British hotel firm IHG Hotels & Resorts has named its new midscale conversion brand Garner, an IHG Hotel.
IHG's 19th brand, initially focused on the U.S., was hinted at during the company’s half-year 2023 earnings results conference call on Aug. 8. CEO Elie Maalouf, who started his role on July 1, said the new brand will be launched later this year and already there was strong investor appetite, with 100 hotels involved in contract negotiations.
During that call, Maalouf quoted CoStar data that said the midscale segment is expected to grow revenue annually to $18 billion by 2030 just in the U.S.
To convert, “the brand will cost hotel owners 25% less than a Holiday Inn Express,” another one of IHG's brands, he added.
There have been no details of deals signed, or locations earmarked, but Maalouf said approximately 500 U.S. Garner hotels are planned to be rolled out over the next 10 years, with the total increasing to 1,000 by 2043.
He added “we have already received more than 100 definitive expressions of interest in Garner, which demonstrates the strong potential in the segment.”
Jen Gribble, the firm’s senior vice president of global marketing mainstream brands, said owners and guests have been missing such a brand in the midscale segment.
Maalouf said Garner will be available for franchising as early as September. He added IHG's 19th brand will be pet-friendly and will complement its existing midscale brand Avid.
During the earnings call in early August, Maalouf added that of all IHG signings in the first half of 2023, 36% of signings and 42% of openings were conversions.