WHY IT RATES: This new agreement marks a significant step in the expansion of IHG’s new avid brand.—Mia Taylor, TravelPulse Senior Writer
InterContinental Hotels Group, one of the world’s leading hotel companies, has announced a Multiple Development Agreement (MDA) with existing partner GS Star GmbH (GS Star) to bring 15 avid hotels to the German market.
This marks a significant milestone for avid hotels, IHG’s newest mainstream brand, in Europe for the first time.
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Germany is a priority market for IHG with 122 hotels already open or in the development pipeline. The strong growth momentum of 50 new signings since 2015 has been driven by IHG’s 11 active MDA partners, which has expanded IHG’s mainstream presence in Germany particularly with the Holiday Inn and Holiday Express brands.
IHG has also been creating wider growth opportunities in the boutique, upscale and luxury markets with the first hotel for Kimpton Hotels & Restaurants in Germany signed in 2018 and a doubling of the Hotel Indigo footprint with three new openings by 2020.
IHG is now seeking to build further on this hotel growth momentum in Germany with the ambition for avid hotels to become one of their biggest brands in Germany.
The deal signed today at EXPO Real in Munich between IHG and GS Star is the first important step in realizing this ambition.
Under the structure of the MDA, hotels will be signed within three years and opened within five. The first new-build avid hotel is planned to open by 2020. GS Star has been selected as a proven MDA partner with existing experience of developing IHG’s mainstream hotels in German priority target cities.
Announcing the deal at a signing ceremony at Expo Real in Munich, Kenneth Macpherson, CEO, Europe, Middle East, Asia and Africa, said: “avid hotels has seen strong signings in the U.S., Canada and Mexico making it IHG’s most successful new brand launch since Holiday Inn Express back in 1990. We are now excited to bring avid hotels to Germany where our proactive development approach has delivered exceptional growth in recent years.”
“GS Star is the ideal launch partner, with a strong track record in mainstream growth opportunities they are well placed to introduce this new, exciting brand to our guests in Germany.”
Andreas Erben at GS Star commented: “We are delighted to be the first to market in Europe with this new brand from IHG, which has the potential to be a strong mainstream growth vehicle. It is a compelling guest offer, removing the frustrations of everyday travel. Attractive development costs matched with an efficient operating model will support quick growth of the concept in major Germany cities.”
Avid hotels, launched by IHG only last year, has already received strong owner interest in the U.S., Canada and Mexico with 130 signings. The first avid hotels property opened in August this year in Oklahoma City.
The avid hotels brand is focused on satisfying guest’s demands for accommodation basics done exceptionally well and on delivering a consistent and differentiated experience on four key areas:
Rooms Designed for Sound Sleep –Delivering a best-in-class sleep experience, with rooms intentionally designed for reliable rest. This includes a high-quality mattress and linens, choice of firm and soft pillows, black-out roller shades and a purposeful design that reduces noise.
Focused, Complimentary Grab and Go Breakfast – A select number of high-quality, brand-name options, will be offered for guests to grab-and-go or enjoy in the lobby, alongside a complimentary premium bean-to-cup coffee experience available 24 hours a day. Plus, a well-curated 24-hour market offering food, drinks and everyday essentials.
Latest Technology – The avid hotels brand will leverage the latest in technology to enable a seamless experience for our guests including next-generation reservation system and IHG Connect enhanced Wi-Fi technology.
The avid Hotels Guarantee – the brand is committed to great stays and has developed the avid hotels guarantee to ensure that the room will be ‘just right’ upon arrival so that guests can rest assured that they made the right decision by choosing avid hotels.
SOURCE: IHG press release
