IHG launches franchising in Malaysia and brings Garner hotels with two-hotel deal

# What happened IHG Hotels & Resorts signed a two-hotel portfolio agreement with King Park Hotel Sdn. Bhd., a unit of Hass Enterprise Sdn. Bhd. The arrangement introduces IHG's franchise operating model to Malaysia and brings Garner hotels to the country for the first time.

# The hotels and timelines

• A conversion of the existing King Park Hotel Kota Kinabalu.
• Total 202 rooms: 106 rooms scheduled to open in 2027, followed by a second phase of 96 rooms opening in 2029.

# Why IHG chose this approach The agreement does two things at once: it uses franchising to accelerate conversions and expands IHG's brand mix in Malaysia. Franchising gives IHG a route to add internationally branded hotels on properties owned and operated locally, while Garner offers a conversion-friendly midscale product aimed at dependable, affordable stays. Holiday Inn Express brings IHG's Essentials positioning to Tawau, with the brand's standard offering such as a complimentary Express Start™ breakfast.

# Brand context

• Positioned as a midscale conversion brand focused on the essentials guests value: comfortable rooms, reliable sleep product, and a quality breakfast offering.
• Garner has more than 110 open properties globally and is described as one of IHG's fastest-growing new brands.

• Part of IHG's Essentials portfolio with over 3,300 open hotels globally and a pipeline of more than 660 hotels.
• Known for simple, smart travel offerings that appeal to both business and leisure guests.

# Geographic and portfolio impact

# Owner perspective and market rationale King Park's ownership group framed Kota Kinabalu as a gateway for domestic and international leisure travel — citing attractions such as Mount Kinabalu and marine parks — and described Tawau as a commercial centre with access to diving and nature attractions. The owners expect that aligning with established global brands and IHG's distribution platforms will strengthen market positioning and open growth opportunities for the converted hotels.

# Practical implications for stakeholders

• For local owners: the franchise route offers an option to rebrand and tap IHG's global distribution and marketing without ceding ownership.
• For travelers: the conversions aim to deliver internationally consistent midscale and essentials-brand experiences in Sabah cities.
• For the market: these moves add branded capacity to growth corridors in Sabah and support IHG's wider Malaysia pipeline, which includes upcoming projects like InterContinental Penang Resort and voco Muar.

# Bottom line