IHG introducing Garner brand to reinforce its presence in Thailand
IHG Hotels & Resorts is bolstering its presence in the Thai market by introducing its new conversion-friendly brand, Garner, while continuing to expand its mainstream brand portfolio, according to Southeast Asia and Korea managing director Vivek Bhalla during a media briefing on Wednesday.
Garner, the group's newest brand, was officially launched last year and is expected to help the group penetrate the midscale space while remaining affordable to both local hotel owners and their guests.
Currently, the Garner brand operates four hotels around the world, with three more set to open in Japan this year. Thailand is in the pipeline, and they hope to sign contracts with local individual hotels this year, Bhalla said.
"I think independent hotel owners are having a more difficult time competing in terms of marketing, branding, services, and distribution. So, IHG provides a trusted brand and a robust management system such as booking, global distribution, service standards, and a loyalty programme to assist them in smoothly operating their businesses with proper benefits," he explained, noting that the present scenario was a fantastic opportunity to introduce Garner to Thailand.
"We are confident of its [Garner] growth potential in city and resort locations including Bangkok, Phuket and Pattaya. Since being launched in August 2023, four Garner hotels have been opened and 79 properties are in the pipeline around the world, as it focuses on the key things its guests value – a convenient location, sound night’s sleep and good Wifi,” he said.
In addition, the group also continued to expand IHG's renowned brands – Holiday Inn Hotels & Resorts and Holiday Inn Express – aiming to reinforce its dominant market position in the industry, he said.
More than half of IHG's open hotels and nearly 50% of those in the pipeline in Thailand are mainstream brands. Upcoming openings include Holiday Inn Express Phayathai later this year and Holiday Inn Express Bangkok Asoke next year.
As part of its growth strategy for Thailand, IHG plans to enhance guest experiences across its current estate of 22 operational mainstream hotels and a pipeline of 16 mainstream properties. This expansion is in line with the group's ambitious goal to double its overall portfolio in Thailand to over 70 hotels in the coming years, Bhalla said.
"We're proud of our mainstream brands' market-leading position and are thrilled to further expand this segment in Thailand, one of our key markets in Southeast Asia," he said.
He emphasised the significant increase in revenue per available room (RevPAR) and the rising demand caused by visa-free travel. The policy contributed to a 13% year-on-year increase in RevPar for the entire industry, including IHG, in Thailand during the first half of 2024, driven by visa-free travel, he said.
“IHG expects double-digit growth from our key source markets in the fourth quarter,” he added.
"With international arrivals projected to grow by 14.8% between now and 2028, Bangkok is expected to see a 6.5% increase this year and another 2.1% in 2025. We are responding to this demand by expanding our portfolio across the country to meet the discerning needs of millennials and Generation Z travellers seeking enriching and authentic travel experiences," he said.
Popular destinations such as Phuket, Samui, and Bangkok remain key priorities for IHG in expansion, Bhalla said, adding he anticipated more upcoming hotels with IHG brands in other secondary cities such as Hua Hin, Rayong, Pattaya, and Khao Yai, thanks to Garner's conversion-friendly model.
IHG operates 9 of the 19 brands in Thailand, with new brand Voco hotels set to launch next year. Overall, the IHG group operates 39 hotels (from 9 brands) in Thailand, with an additional 35 in the pipeline for franchise, management, and conversion.
Given the ongoing demand for travel in Thailand from both domestic and international tourists, he believes that the hospitality industry will be positive in the coming years, while challenges in terms of economic conditions, funds, and workforces are the norms that IHG must deal with as always.
"We are in Thailand for Thailand, dedicated to creating the best stay experiences for our guests and increased returns for our valued owners," he said.
With a family of 19 hotel brands and one of the world's largest hotel loyalty programmes, IHG has more than 6,400 open hotels in over 100 countries, and a development pipeline of over 2,200 properties.
