IHG, Novum make big deal in Germany

GERMANY - IHG Hotels & Resorts and Germany’s Novum Hospitality have signed a 30-year agreement that will double IHG’s presence in Germany to more than 200 hotels in almost 100 cities and make Novum one of IHG’s biggest franchisees. The collaboration will include Holiday Inn – the niu brand, as well as IHG’s Garner and Candlewood Suites.

The deal with Novum, owned by David Etmenan, includes up to 108 Novum Hospitality already open hotels (15,334 rooms) and 11 hotels under development (2,369 rooms) that are expected to join IHG’s system between 2024 and 2028. Conversion of the hotels to IHG’s system will happen in phases beginning in 2024, with the majority taking place over the next 24 months. This will increase IHG’s global system size by up to 1.9% over the coming years.

Fully, 52 open and pipeline hotels in key target markets will join IHG through a collaboration between Holiday Inn and the niu, Novum Hospitality’s flagship upper midscale brand. Novum’s other brands, Yggotel, Select and Novum, with 56 open and pipeline hotels, will convert to IHG’s new midscale conversion brand, Garner. The acora Living the City brand with 11 open and pipeline hotels will convert to IHG’s midscale extended-stay brand, Candlewood Suites.

Lobby at the niu fender in Amsterdam

Under the agreement, IHG will receive franchise fees after the phased conversion of existing properties and upon the opening of the hotels under development. Additionally, standard assessments will be received into IHG’s System Fund, including those to cover the operation of IHG One Rewards, and marketing and reservation services. IHG will contribute key money capital expenditure that will reflect the phased conversion and timing of openings of this major portfolio of hotels.

The agreement includes an exclusivity arrangement for future Novum Hospitality hotels to join IHG’s brands and enterprise system, with an ambition to jointly develop further hotels over time.

A total of 111 Novum Hospitality properties are in Germany, with the remaining eight in Austria, the Netherlands and the U.K.

“Bringing Garner to Europe in such a critical market as Germany is a great moment, as is taking Candlewood Suites outside of the Americas for the first time,” said IHG CEO Elie Maalouf.

Etmenan added, “Partnering with IHG equips our family-run business with the firepower needed to fortify our market presence across Europe.”