IHG accelerates Malaysia Expansion with Debut of Garner Hotels and Franchise Model

IHG Hotels & Resorts (IHG), one of the world’s leading hotel companies, today announced the signing of a two-hotel portfolio agreement with King Park Hotel Sdn. Bhd, a subsidiary of Hass Enterprise Sdn. Bhd., a privately owned, diversified investment group headquartered in Miri, Sarawak.

This agreement marks two significant milestones for IHG in Malaysia. The launch of its franchise model and the debut of Garner hotels, IHG’s midscale conversion brand, in the country. The 202-room Garner Hotel Kota Kinabalu will be rebranded from King Park Hotel Kota Kinabalu with 106 rooms scheduled to open in 2027, and an additional 96 rooms opening in a second phase in 2029. The 140-room Holiday Inn Express Tawau will become IHG’s first hotel in Tawau and will open in 2028 after an extensive refurbishment of the existing King Park Hotel Tawau.

The introduction of franchising marks an important milestone in IHG’s growth across Southeast Asia, enabling us to unlock more conversion and repositioning opportunities across both independent and internationally branded hotel assets.

We are delighted to launch IHG’s franchise model in Malaysia with a two-hotel portfolio agreement with King Park Sdn. Bhd. As experienced hotel owners with deep local market expertise, they are the ideal partner for our first two franchise hotels and will help create a strong foundation for long-term success.

This agreement also introduces Garner hotels to Malaysia. Garner Hotel Kota Kinabalu will increase our open and pipeline presence in Kota Kinabalu from one to five hotels, while Holiday Inn Express Tawau gives IHG its first presence in the city and strengthens our footprint across Sabah’s growing tourism corridor. These are great additions to IHG’s Malaysia portfolio and reinforces our commitment to delivering high-quality stay experiences in the premium midscale segment.

Bryan Chan, Vice President, Development, South East Asia & Korea, IHG

We are excited to partner with IHG to introduce the first Garner in Malaysia and the first internationally branded hotel in Tawau. Kota Kinabalu continues to attract robust international and domestic travel, underpinned by its position as Sabah’s gateway to leading leisure destinations such as Mount Kinabalu and Tunku Abdul Rahman Marine Park. Tawau is a key commercial centre on the state’s east coast and its accessibility to world class diving locations and nature attractions presents Tawau with significant growth potential.

We believe aligning these hotels with globally recognised brands and leveraging on IHG's global enterprise and distribution platforms will strengthen their market positioning and unlock new opportunities for growth. We look forward to welcoming travellers to these two cities when they open.

King Park Hotel Sdn. Bhd spokesperson

With over 110 open properties globally, Garner Hotel Kota Kinabalu will join IHG’s fastest-growing new brand. Designed for travellers seeking dependable quality at an affordable price point, Garner focuses on delivering the stay essentials that matter most, while offering owners a flexible and conversion-friendly model. Guests can expect comfortable rooms, a great night's sleep and a quality breakfast experience, alongside local touches that reflect the character of the destination.

Holiday Inn Express Tawau will join IHG’s fastest-growing Essentials brand with over 3,300 open hotels and over 660 hotels in the pipeline globally. Built around a promise of simple, smart travel, the brand appeals to a broad range of travellers – from business to leisure – offering an engaging place to rest and recharge, with a complimentary Express Start™ breakfast.

The two hotel signings will expand IHG’s presence in Malaysia to more than 20 open and pipeline hotels across city and resort destinations including Johor Bahru, Kuala Lumpur, Kuching, Melaka and Penang. Upcoming IHG hotels in Malaysia include InterContinental Penang Resort, a transformation of the former Mutiara Beach resort and voco Muar, the second voco hotel to open in Malaysia.