Marriott and IHG to Add About 100 Hotels Each in Europe

15.04.2024 - 21:13 / skift.com / Sean Oneill / Elie Maalouf

Marriott and IHG each announced Monday their latest expansion plans in Europe. Marriott set its sights on adding nearly 100 hotels by 2026, while IHG signed a deal to add more than 100 in Germany.

The announcements came as all hotel groups strive to sustain or speed up the addition of hotels to their networks. High financing costs have slowed new construction in Europe, and many companies seek to renovate and rebrand existing properties.

Lingering high inflation in Europe is also pressuring owners of hotels that are either independent or affiliated with small regional brands to switch to one of the global hotel brands. International giants can facilitate more cost-effective upgrades to furnishings and provide marketing channels that cost less than what smaller hotel companies pay online travel agencies.

Marriott said it would add “nearly 100” properties with over 12,000 rooms in Europe — especially in Italy, Britain, Spain, and Türkiye — through hotel conversions or converting existing buildings into hotels by the end of 2026.

This group of hotels is in addition to the approximately 250 other European hotels it expects to open before 2027.

Marriott already has more than 800 properties, with nearly 150,000 rooms, in Europe.

IHG and Novum Hospitality, one of the largest family-run hotel groups in Germany, said they would team up in a 30-year deal.

The move will double IHG’s presence in Germany to over 200 hotels in nearly 100 cities. It will make Novum Hospitality one of IHG’s largest franchisees worldwide.

“Up to 108 NOVUM Hospitality open hotels (15,334 rooms) and 11 hotels under development (2,369 rooms) are expected to join IHG’s system between 2024 and 2028,” the company said.

For example, Novum Hospitality’s brands, Yggotel, Select, and Novum will convert to IHG’s brand, Garner. Its Acora Living the City brand, with 11 open and pipeline hotels, will convert to IHG’s midscale extended stay brand, Candlewood Suites.

In a rare move, the two companies are creating something of a combined brand, Holiday Inn — The Niu. Novum Hospitality properties that have been branded “The Niu” will now be Holiday Inn — the niu and get all the benefits of being an IHG brand, apparently without IHG formally adding a new brand to its portfolio.

CEO Elie Maalouf said the “collaboration pairs our world-famous Holiday Inn brand with a high-quality local brand that has an excellent, largely newly-built estate.”

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

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