InterContinental Hotels Group PLC (IHG Hotels & Resorts) has entered a management agreement with GCP Hospitality for a portfolio of 14 hotels in Kyoto, Japan, totaling 1,063 rooms, announced on 24 August 2026. The deal represents one of the largest hotel conversion portfolios in Japan recently and includes a mix of 12 Garner-branded hotels, one Holiday Inn Express, and one unbranded property.
The portfolio’s hotels are slated for phased renovation and rebranding over the ensuing 12 months. GCP Hospitality, the hospitality division of Gaw Capital Group, will oversee the management of the entire portfolio throughout this transition period.
IHG’s Existing Kyoto Presence and Portfolio Expansion
This agreement
significantly expands IHG’s footprint in Kyoto, where it currently operates multiple properties including Six Senses Kyoto, ANA Crowne Plaza Kyoto, Holiday Inn Kyoto Gojo, and Garner Hotel Kyoto Shijo Karasuma. The newly acquired hotels are strategically located in key districts around Kyoto Station, Shijo, and Gojo, enabling convenient access to major transportation hubs and tourist sites.
The acquisition also marks IHG’s third Holiday Inn Express signing in Japan following earlier openings in Osaka City Centre – Midosuji and Sapporo Susukino.
Executive Statements on Strategic and Operational Impact
Abhijay Sandilya, Managing Director for Japan and Micronesia at IHG Hotels & Resorts and CEO of IHG ANA Hotels Group
Japan, described the deal as a milestone for expanding IHG’s mainstream hotel presence in Japan’s underpenetrated business segment. He highlighted the rapid growth of the Garner brand since its launch in Japan in 2025 and noted increasing owner interest in rebranding to leverage IHG’s marketing, technology, distribution channels, and loyalty program IHG One Rewards, which has over 160 million members worldwide.
GCP Hospitality CEO Erwann Mahé said the company will lead management of the 14-hotel portfolio, supported by IHG’s global scale and brand strength, as the hotels are repositioned within one of Japan’s key tourism markets.
Market Context and Business Hotel Segment in Japan
Kyoto remains a vital
tourist destination appealing to strong domestic and international demand year-round. Japan’s business hotel sector is predominantly served by domestic operators, making IHG’s expanding international presence notable. Owner confidence in IHG’s platform and brand strength underpins the growing trend of hotel conversions in Japan’s expanding accommodation market.
IHG operates with an asset-light business model focused on franchising and hotel management, enabling revenue growth through management fees rather than ownership of physical properties. This portfolio addition enhances IHG’s footprint while providing diversified fee income streams.
Garner Brand Growth and IHG’s Japan Expansion
The Garner midscale conversion brand was introduced in Japan in 2025 with three hotels in Osaka, quickly
becoming IHG’s fastest scaling global brand with 100 open hotels since its August 2023 launch. Garner targets both business and leisure travellers with modern midscale accommodations.
By expanding Garner’s presence in Kyoto through this portfolio, IHG aims to exploit the sizable opportunity within Japan’s underpenetrated business hotel segment and plans to pursue additional portfolio deals nationwide.
Globally, IHG operates more than 7,000 hotels encompassing over one million rooms across 21 brands. The company maintains a development pipeline of approximately 2,400 hotels. Its growth strategy in Japan and Asia leverages marketing, technology, distribution platforms, and the IHG One Rewards program to
attract owners and travellers.
