Intercontinental Hotels Group PLC (LSE:IHG), the Holiday Inn owner, said it is launching a new hotel brand called Garner.
Targeting the midscale segment, it will offer current owners a chance to convert their sites into franchises.
Hoping to come to fruition by September, the brand aims to provide an “affordable price point” while remaining “a high-quality conversion brand”.
“In addition to the benefit of accessing IHG’s global sales organization, strong low-cost distribution systems and lower procurement costs, owners will value the brand’s flexible approach to conversions,” a company statement said.
Looks cosy Source: IHG
Benefiting from travel recovery and soaring prices, which in turn is keeping inflation high, IHG is able to offer smaller bits of added value at Garner like flavoured water at arrival, digital check-ins, and complimentary snacks– something the shrinking independent sector may be unable to offer.
Elie Maalouf, chief executive officer, IHG Hotels & Resorts, said: “Garner is another exciting step forward in the transformation of our brand portfolio, bringing to the midscale market a brand we know owners and guests want from IHG.
“We have already received more than 100 definitive expressions of interest in Garner, which demonstrates the strong potential in the segment.”
Ready to accept franchisees in September, IHG hopes to launch the first Garner hotel by the end of the year and aims to have 500 US-branded hotels in the next ten years.
IHG is down a little over 1% on Thursday, having opened at around 5,900p.