\nfor IHG Hotels & Resorts and one of Europe\u2019s largest hotel markets with
\nstrong domestic consumption, inbound and outbound travel, according to Karin
\nSheppard, senior vice president and managing director, Europe for IHG. The
\ngroup is upping its scale in Germany through its 2024 partnership with Novum
\nHospitality<\/a> and the February acquisition of Ruby Hotels<\/a>.<\/p>\n
\u201cFrom a development perspective, In line with its international Germany\u2019s Federal Statistical \u201cWe see immense long-term growth IHG opened 14 hotels in Germany We see immense long-term growth potential there, which is why we are committed to investing heavily in the market and expanding our portfolio.<\/p>\n Karin Sheppard<\/p>\n Sheppard described the 30-year Under the partnership, IHG\u2019s German About 50 of those will switch from \u201cSignificant progress had been made \u201cWe\u2019ve opened around 80 of these Rise of international According to Horwath HTL, \u201cOpportunities in existing hotels This has seen new developments \u201cThe brownfield market is on the Buer said franchise agreements are German brands benefit, too<\/p>\n While global brands are leveraging Novum Hospitality CEO David Etmenan \u201cIt\u2019s incredible what we have now<\/a><\/p>\n
\nGermany still has plenty of scope for increased brand penetration, particularly
\nin the middle and upper-midscale segments,\u201d she said.<\/p>\n
\ngrowth strategy, Sheppard said IHG sees in Germany \u201ca runway for bolstering the
\nperformance and position in these segments\u2026 and gaining a strong domestic
\nplatform.\u201d<\/p>\n
\nOffice said there were a record 496 million overnight stays in the country last
\nyear, the second highest in Europe and up 22.6% compared to 2023.<\/p>\n
\npotential there, which is why we are committed to investing heavily in the
\nmarket and expanding our portfolio,\u201d Sheppard said. <\/p>\n
\nduring the first quarter and signed agreements for a further 16 hotels,
\nincluding 11 from the Ruby acquisition.<\/p>\n![\"Quote\"](\"https:\/\/ik.imgkit.net\/3vlqs5axxjf\/HIT\/dist\/images\/icon-quote.svg?tr=w-70%2Ch-45%2Cfo-auto\" "\\"Quote\\"\/"){kind=icon}
<\/p>\n
\nfranchise deal with Novum as a mass conversion deal that doubles IHG\u2019s presence
\nin a priority growth market. It also enables IHG to introduce its midscale
\nconversion brand, Garner, and its extended-stay brand, Candlewood Suites.<\/p>\n
\nportfolio is expected to expand to over 200 hotels across 100 cities, making
\nIHG one of the leading midscale and upper midscale players in the country. <\/p>\n
\nNovum\u2019s upper-midscale brand, niu, to Holiday Inns. <\/p>\n
\nwith conversions and property improvements at many of the original 119 hotels
\ncovered under the agreement,\u201d Sheppard said, noting those are located
\npredominantly in primary and secondary cities. <\/p>\n
\nhotels spread right across Germany in cities like Hamburg, Berlin and
\nFrankfurt,\u201d Sheppard said, noting that IHG has also expanded its team and
\ninvestment in Germany to drive awareness of its brands and loyalty program. <\/p>\n
\ninvestment<\/p>\n
\ninternational investors are transforming the German hotel market with seven
\ndomestic brands snapped up in the past few years. They range from Radisson\u2019s (then
\nRezidor) progressive purchase of prizeotel between 2016 and 2019, Accor\u2019s 30%
\nstake in 25hours in 2017 to IHG\u2019s latest deal.<\/p>\n<\/a><\/p>\n
\nare driving the market for hotel investors,\u201d said Horwath HTL Managing Partner Christian
\nBuer. \u201cNew hotels are not being developed, or at least very few, with the
\nrising construction costs since the pandemic.\u201d<\/p>\n
\nbeing put on hold, said Buer, creating surging foreign investor interest.<\/p>\n
\nmove, especially for hotels whose construction was completed before the
\npandemic,\u201d he said. \u201cAs competition for hotel properties in Germany is
\ncurrently low, foreign investors are paying closer attention to the German property
\nmarket\u2026 Yields are currently low. Lease agreements provide secure monthly
\nincome.\u201d<\/p>\n
\n\u201ca stable economic model in Germany,\u201d attracting interest from all the major
\nglobal players, including Accor, Marriott and Hilton. The continuing growth in
\ndemand for the franchises with white-label operators since 2010 has led to
\ngreater brand density, especially in so-called B and C cities.<\/p>\n
\nsuccessful German brands for European expansion, the reverse is also true. <\/p>\n
\nsaid the collaboration with IHG has been a major driver of growth and a key
\nstep in their successful global expansion strategy.<\/p>\n
\nbuilt as a new pipeline, with more than 60 new-build hotels,\u201d he said. \u201cThe
\n50-50 co-branding together with IHG has given both parties the firepower to
\naccelerate, gain more visibility globally and attract investor interest.\u201d<\/p>\n