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IHG expands Malaysia presence with two-hotel agreement

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IHG Hotels & Resorts has signed a two-hotel portfolio agreement with King Park Hotel, marking the launch of IHG’s franchise model and the debut of its Garner Hotels brand in Malaysia.

The 202-room Garner Hotel Kota Kinabalu will be converted from King Park Hotel Kota Kinabalu, with 106 rooms scheduled to open in 2027 and a further 96 rooms in 2029.

 The 140-room Holiday Inn Express Tawau will become IHG’s first hotel in Tawau and is expected to open in 2028 following refurbishment.

Bryan Chan, Vice President, Development, South East Asia & Korea, IHG said: “The introduction of franchising marks an important milestone in IHG’s growth across Southeast Asia, enabling us to unlock more conversion and repositioning opportunities across both independent and internationally branded hotel assets.

“We are delighted to launch IHG’s franchise model in Malaysia with a two-hotel portfolio agreement with King Park Sdn. Bhd. As experienced hotel owners with deep local market expertise, they are the ideal partner for our first two franchise hotels and will help create a strong foundation for long-term success.

“This agreement also introduces Garner hotels to Malaysia. Garner Hotel Kota Kinabalu will increase our open and pipeline presence in Kota Kinabalu from one to five hotels, while Holiday Inn Express Tawau gives IHG its first presence in the city and strengthens our footprint across Sabah’s growing tourism corridor. These are great additions to IHG’s Malaysia portfolio and reinforces our commitment to delivering high-quality stay experiences in the premium midscale segment.”

King Park Hotel spokesperson said: “We are excited to partner with IHG to introduce the first Garner in Malaysia and the first internationally branded hotel in Tawau. Kota Kinabalu continues to attract robust international and domestic travel, underpinned by its position as Sabah’s gateway to leading leisure destinations such as Mount Kinabalu and Tunku Abdul Rahman Marine Park. Tawau is a key commercial centre on the state’s east coast and its accessibility to world class diving locations and nature attractions presents Tawau with significant growth potential.

“We believe aligning these hotels with globally recognised brands and leveraging on IHG's global enterprise and distribution platforms will strengthen their market positioning and unlock new opportunities for growth. We look forward to welcoming travellers to these two cities when they open.”

The agreements will bring IHG’s open and pipeline portfolio in Malaysia to more than 20 hotels across destinations including Kuala Lumpur, Johor Bahru, Kuching, Melaka and Penang. -TTN

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