A deal with the operator GS Star will see 15 avid hotels open in the “priority market” of Germany over the next five years.
InterContinental Hotels Group has announced a ‘multiple development agreement’ with the German midrange hotel operator GS Star to bring 15 avid hotels – the brand comes all in small letters – to the German market.
It marks what IHG calls “a significant milestone” in launching avid, the company’s newest mainstream brand, in Europe for the first time.
IHG calls Germany “a priority market”, and the hospitality giant has 122 hotels there already open or in the development pipeline.
Strong growth momentum of 50 new signings since 2015 has been driven by IHG’s 11 active partners on the ground, expanding the group’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.
The group is now seeking to build further on this momentum in Germany with its plan for avid hotels to become one of its biggest brands in Germany.
The deal between IHG and GS Star, signed at this week’s EXPO Real property fair in Munich, is “the first important step in realising this ambition”, IHG says.
Under the structure of the agreement, hotels will be signed within three years and opened within five. The first new-build avid is planned to open by 2020 and GS Star is continuing to work on developing IHG’s mainstream hotels in Germany’s priority target cities.
“avid hotels has seen strong signings in the US, Canada and Mexico, making it IHG’s most successful new brand launch since Holiday Inn Express back in 1990,” says Kenneth Macpherson, the group’s chief executive for Europe, the Middle East, Asia and Africa.
“We are now excited to bring avid hotels to Germany where our proactive development approach has delivered exceptional growth in recent years.”
Launched by IHG one year ago, avid hotels has already received 130 signings. The first opened in August in Oklahoma City.
The brand is focused on “satisfying guests’ demands for accommodation basics done exceptionally well and on delivering a consistent and differentiated experience on four key areas”, namely “rooms designed for sound sleep”, a “focused, complimentary grab and go breakfast”, the latest technology and the avid hotels guarantee ensuring that the room “will be ‘just right’ upon arrival”.