Update: IHG's new Garner brand will target lower midscale space for conversions

ATLANTA – IHG Hotels & Resorts has branded its emerging midscale conversion brand as Garner. It said the brand will be ready to franchise in the U.S. in early September, with its first hotels on track to open before the end of 2023. IHG expects the brand to grow rapidly and reach an estate of more than 500 U.S. hotels during the next decade (and 1,000 U.S. hotels during the next 20 years).

Garner also marks IHG’s efforts to capitalize on a growing U.S. midscale market, which is projected to reach $18 billion in value by 2030 compared to $14 billion today. “We have already received more than 100 definitive expressions of interest in Garner, which demonstrates the strong potential in the segment,” said IHG Hotels & Resorts CEO Elie Maalouf.

For Garner, IHG told Hotel Investment Today that it will be targeting hotels for conversion in the lower midscale space. “If we look at the performance of comparable brands in that space, they generally run at rates of approximately $100 ADR,” said Karen Gilbride, vice president, Global Brand Management for IHG Hotels & Resorts. “We’ll look to drive even stronger returns, while also recognizing that rates will vary depending on time of the year and what’s happening within individual markets (among other factors).”

IHG has stated that Garner arrives at a lower price point and conversion cost per key than Holiday Inn Express. “We have designed the Garner brand to sit below our Holiday Inn Express brand in terms of cost to convert and rate positioning,” Gilbride said. “Our rate likely will be around 15% to 20% below Holiday Inn Express, but we recognize that rates are relative to the market each hotel will be in.”

IHG is highlighting its flexible approach to conversions, as well as amenities such as complimentary hot breakfast and flavor-infused water on arrival, and pet-friendly accessories and designated areas.

Expanding on its “flexible approach” to conversions, IHG said it will evaluate each property to understand the extent of needed renovation (or PIP). “We will allow useful life of case goods and soft goods if they are in good condition. This allows for the scope of the PIP to vary as needed while still providing the Garner brand-defining hallmarks and experience,” Gilbride added. “With our flexible conversion approach, we will work with each owner and property site to determine whether they are a good fit for the Garner brand.”