Marriott and IHG have both announced plans for expansion in Europe, with Marriott aiming to add nearly 100 hotels by 2026 and IHG signing a deal to add over 100 in Germany. These expansions come as hotel groups face challenges in adding new properties due to high financing costs and the need for renovations and rebranding of existing buildings. The goal is to sustain or increase the number of hotels in their networks, with international giants like Marriott and IHG offering cost-effective upgrades and marketing channels to smaller, regional hotels.
Marriott plans to add nearly 100 properties with over 12,000 rooms through hotel conversions or converting existing buildings into hotels in Europe by 2026. This expansion is in addition to the approximately 250 other European hotels Marriott expects to open by 2027. The company already has over 800 properties with nearly 150,000 rooms in Europe, focusing on countries like Italy, Britain, Spain, and Türkiye for future growth.
IHG has partnered with Novum Hospitality in a 30-year deal to double its presence in Germany to over 200 hotels in nearly 100 cities. This collaboration will make Novum Hospitality one of IHG’s largest franchisees worldwide. As part of the deal, Novum Hospitality properties will convert to IHG’s brand, Garner, with a new combined brand, Holiday Inn — the niu. This partnership combines IHG’s world-famous Holiday Inn brand with Novum Hospitality’s high-quality local brand, The Niu.
The relationship between IHG and Novum Hospitality will result in up to 108 NOVUM Hospitality open hotels and 11 hotels under development joining IHG’s system between 2024 and 2028. Brands like Yggotel, Select, and Novum will convert to Garner, while Acora Living the City brand will convert to IHG’s midscale extended stay brand, Candlewood Suites. This partnership aims to capitalize on Novum Hospitality’s newly built estate and provide additional benefits to the properties by being part of IHG’s global brand portfolio.
Both Marriott and IHG are focused on growth through hotel conversions and rebranding of existing properties rather than new construction. This approach allows them to expand their networks more quickly and efficiently, especially in light of high inflation and financing costs in Europe. By partnering with large international brands like Marriott and IHG, smaller regional hotels can access resources for upgrades, marketing, and distribution that may not be available to them as independent properties or affiliates of smaller brands.
