IHG Hotels & Resorts and German hotel operator Novum Hospitality entered into a long-term agreement that will double IHG's presence in Germany to more than 200 hotels.
The expansion will be made through a collaboration between IHG's Holiday Inn and Novum's The Niu brands — called Holiday Inn - The Niu — as well as IHG's debut of Garner and Candlewood Suites brands in Europe, according to a news release. IHG will have a hotel in about 100 different German cities.
Novum is a private hotel operator owned by David Etmenan.
Up to 108 of Novum's open hotels as well as 11 under development are set to join IHG's system between 2024 and 2028 in phases, with a majority taking place over the next two years. Novum has a total portfolio of 119 hotels; 111 of them are in Germany and the remaining eight are in Austria, the Netherlands and the U.K.
Fifty-two of Novum's open and pipeline hotels will join the IHG brand through a collaboration between Holiday Inn and Novum's flagship upper-midscale brand The Niu.
Novum's other brands, Yggotel, Select and Novum, comprised of 56 open and pipeline hotels, will convert to IHG's new midscale conversion brand Garner. Its Acora Living the City brand includes 11 open and pipeline hotels that will convert to IHG's midscale, extended-stay brand Candlewood Suites.
The deal also includes an exclusivity arrangement for future Novum hotels to join IHG's system, with a goal of jointly developing more hotels over time. The agreement has a term of 30 years and can be renewed.
“Partnering with IHG ... 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," Etmenan said in a news release. "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 endeavors.”
"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," Elie Maalouf, CEO of IHG, said in the news release.
In 2022, there were more than 450 million overnight stays in Germany, marking the second highest in Europe. The country generated the highest number of international outbound travelers globally at about 100 million.