InterContinental Hotels Group will add a further 70 resort and all-inclusive hotels – around 24,300 rooms – to its portfolio following the signing of a commercial agreement with Spanish family-run business Iberostar Hotels and Resorts.
The agreement, for an initial term of 30 years, sees IHG gain the licence to Iberostar Beachfront Resorts – IHG’s 18th brand – boosting its global system size by up to 3%.
Iberostar, which is based in Palma de Mallorca, Spain, is considered among the top resort brands in the world and has a strong focus on sustainability and responsible tourism. Iberostar will retain complete ownership as part of this strategic alliance.
IHG Hotels & Resorts Chief Executive, Keith Barr, said the agreement with Iberostar reflects guest demand for all-inclusive stays.
“Guests have told us of their wish for increased choice of resort and all-inclusive destinations within our brand portfolio,” he said.
“We are delighted to address that by working with such a well-respected, experienced and like-minded partner as Iberostar, and to see more amazing hotels join our system that continues IHG’s growth in so many of the world’s most attractive markets and destinations.
“Iberostar has successfully developed a leading presence in beachfront and all-inclusive properties in the Caribbean, Americas, Southern Europe and North Africa over many decades, and we are excited about the opportunities to further grow the brand’s footprint together.”
Iberostar’s existing portfolio recorded total gross revenue of approximately US$1.3bn in 2019, equivalent to growth of over 4% on IHG’s $27.9 billion of total gross revenue.
The first properties to join the IHG system this December will be located in Mexico, the Dominican Republic, Jamaica, Brazil and the Canary Islands, with more properties in Spain, Southern Europe and North Africa to come onboard in 2023 and 2024. A further six Iberostar Beachfront Resort properties are also in the pipeline.
Iberostar is set to benefit from IHG’s global enterprise platform, distribution channels, and 100-million-member loyalty programme. IHG will in turn extend awareness of Iberostar’s brands to more travellers.
“With this agreement, we set the path to continue the outstanding growth that began 40 years ago with the creation of the Iberostar brand and which has positioned us among the top resort brands in the world,” said Iberostar Group Vice-Chairman and Chief Executive Officer, Sabina Fluxá.
“The alliance with IHG combines our strengths, represents a decisive step forward in the distribution of Iberostar’s beachfront resorts, and reinforces our position as a benchmark in responsible tourism.
“By working together, we will grow our portfolio and we are really looking forward to hosting IHG loyalty members in our collection of premium and luxury beachfront resorts and all-inclusive properties.”
Iberostar’s sustainability efforts including a pioneering Wave of Change movement which aims to move towards a circular economy. As part of this alliance, the two businesses will work together on joint sustainability initiatives that align with IHG’s responsible business plan.
Iberostar Group Chairman, Miguel Fluxá, said retaining full ownership is important to the business as it allows preservation of its autonomy and values.
“Retaining 100% ownership of Iberostar allows us to continue to generate differentiation in the hospitality industry with a long-term vision for our employees, clients, tour operators, distribution partners and local communities that have been loyal to us during all these years,” he said.
“We will continue to stay true to who we are, preserving our philosophies and values of quality and sustainability.”