InterContinental Hotels Group PLC (IHG Hotels & Resorts) has signed a portfolio agreement with GCP Hospitality, the hospitality arm of Gaw Capital Group, to add 14 hotels in Kyoto, Japan. The portfolio includes 1,063 rooms across 12 Garner hotels, one Holiday Inn Express property, and one unbranded hotel. All properties will be renovated and rebranded with phased openings planned within the next 12 months.
Significance for IHG’s Japan Expansion and Brand Growth
This multi-hotel deal is among the largest hotel conversion portfolios in Japan in recent years, supporting IHG’s strategy to grow its presence in the Japanese market. Garner, IHG’s midscale conversion brand focused on business and leisure
travelers, launched globally in August 2023 and reached 100 open hotels worldwide within months. This agreement marks IHG’s third Holiday Inn Express property in Japan, following the openings of Holiday Inn Express Osaka City Centre – Midosuji and Holiday Inn Express Sapporo Susukino.
IHG’s expanded Kyoto portfolio will complement existing properties such as Six Senses Kyoto, ANA Crowne Plaza Kyoto, Holiday Inn Kyoto Gojo, and Garner Hotel Kyoto Shijo Karasuma. The deal positions IHG as a leading international hotel operator in Kyoto, a city with strong demand from both domestic and international visitors.
Management and Location Details
GCP Hospitality will manage the entire 14-hotel
portfolio under the partnership. The hotels are strategically located in key Kyoto districts including areas around Kyoto Station, Shijo, and Gojo. These locations provide convenient access to major transportation hubs and popular tourist sites, serving business and leisure travelers.
Official Statements on Strategic Value
Abhijay Sandilya, Managing Director for Japan & Micronesia at IHG Hotels & Resorts and CEO of IHG ANA Hotels Group Japan, described the deal as a milestone for IHG’s rapid mainstream expansion in Japan and a sign of owner confidence. He emphasized the growing appeal of Garner’s brand and the opportunity to increase its footprint nationwide in an underpenetrated business hotel
market.
Erwann Mahé, CEO of GCP Hospitality, said the agreement, building on their successful track record, expands their management role across the portfolio. He highlighted leveraging IHG’s global scale, brand strength, and distribution to reposition these hotels in Kyoto’s important tourism market.
Business Hotel Market and Traveler Benefits
Japan’s business hotel segment has traditionally been dominated by domestic brands, creating growth opportunities for international players like IHG and its Garner brand. The asset-light model IHG employs focuses on franchising and managing hotels, enabling incremental fee income from large portfolio agreements such as this.
Travelers will gain access to affordable, quality midscale accommodations through Garner and Holiday
Inn Express brands, with locations near key transportation nodes and cultural attractions in Kyoto. The renovations and rebrandings are expected to enhance the overall guest experience in this high-demand city.
