The midscale segment has been a growth engine for IHG Hotels & Resorts, helping fuel the company for nearly 70 years. IHG’s continued expansion in the segment stems from interest among owners and guests, alike, in a segment that is predicted to grow in revenue from $14 billion today to $18 billion by 2030 in the U.S. alone, according to a STR analysis.
IHG’s midscale brand portfolio includes Holiday Inn, Holiday Inn Express and Candlewood Suites, along with newer offerings like avid hotels and Atwell Suites.
The company’s midscale segment now comprises six brands and over 4,400 open and pipeline properties in Americas alone. These six brands now account for over 80% of its system size in the Americas region.
IHG launched its latest midscale, conversion brand, Garner Hotels, in August 2023 and opened the brand’s inaugural property—Garner Hotel Auburn – Seattle shortly thereafter. As the midscale space becomes more lucrative and attractive, the company continues to leverage guest and owner feedback to launch and evolve its existing brands, said Jolyon Bulley, CEO – Americas, IHG Hotels & Resorts.
“With nearly 800 additional properties in the regional pipeline supported by IHG’s robust enterprise capabilities, we look forward to extending our reach across new markets and generations of travelers.”
IHG closed 2023 on a positive note, with more than 150 openings and more than 300 signings globally across all its midscale brands.
- Holiday Inn saw the launch of premium breakfast program and the introduction of the H5 prototype design neat Chicago’s O’Hare Airport (a dual-branded property with Staybridge Suites) in 2023. The brand has over 750 open or pipeline hotels in the Americas, which includes new openings in Dallas, Philadelphia, Jalisco in Mexico and on Canada’s Vancouver Island.
- One of the leading brands by IHG and responsible for roughly half of its total hotel portfolio, Holiday Inn Express has extended its “simple, smart travel” commitment to over 50 countries. IHG’s largest brand worldwide, Holiday Inn Express saw more than half of the brand’s global signings taking place in the Americas region. Upcoming openings include in destinations such as Dallas, Atlanta, Austin, San Antonio, Phoenix and Tampa, Fla.
- avid hotels, which is one of IHG’s latest “emerging brand of scale,” marked the first anniversary of its debut property in September 2023 by launching in New York City. The brand, which mostly comprises new-build properties, is aiming to triple its footprint in the Americas, with additions of more than 140 properties in the U.S., Canada and Mexico. Some of the significant openings in 2023 include market debuts in Tulsa, Okla., Fort Worth, Texas, Austin and Tuscaloosa, Ala.
- Within five months of the brand’s announcement, Garner Hotels opened its first three hotels in the U.S. in suburban Seattle, Macon, Ga. and Quail Springs, Okla. The brand signed seven more projects, which will further its goal of having over 500 open properties in the U.S. in the next 10 years. The brand is now available to franchise in Mexico and scheduled to follow in Canada this year. IHG also plans to expand the brand in the Europe, Middle East, Asia and Africa region and has recently signed an LOI in Japan to convert three hotels in Osaka to Garner.
- Candlewood Suites, the brand saw 49 new signings in 2023, the second-most in the region for any IHG brand. This adds to Candlewood Suites’ existing roster of over 520 open or pipeline hotels in the Americas. Some of the notable openings in 2023 include in Salt Lake City, suburban Atlanta and Houston and Irving, Texas.
- Atwell Suites, the upper midscale all-studio suite brand, capitalized its expansion from its 2022 launch with 16 new signings in Americas in 2023. This brings the brand’s regional pipeline to 41 hotels. The brand opened its third property in the U.S. (and its first in Texas) this month, joining its inaugural properties in Miami and Denver. The brand saw several groundbreakings, including in Las Vegas and Henderson, Nev. And Forth Worth, Texas.