IHG Hotels & Resorts (IHG) has signed 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.
The agreement introduces IHG’s franchise model in Malaysia and marks the country debut of Garner hotels, IHG’s midscale conversion brand.
The portfolio includes the 202-room Garner Hotel Kota Kinabalu, which will be rebranded from King Park Hotel Kota Kinabalu. The first 106 rooms are scheduled to open in 2027, followed by a further 96 rooms in 2029.
The second property, the 140-room Holiday Inn Express Tawau, will become IHG’s first hotel in Tawau. It is scheduled to open in 2028 following an extensive refurbishment of the existing King Park Hotel Tawau.
IHG Introduces Franchise Model in Malaysia
Bryan Chan, Vice President, Development, South East Asia & Korea, IHG, said the introduction of franchising would create additional opportunities for hotel conversions and repositioning across the region.
“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.”
According to IHG, the Garner Hotel Kota Kinabalu signing will increase its open and pipeline presence in Kota Kinabalu from one to five hotels.
Holiday Inn Express Tawau will also give IHG its first hotel in the city.
First Garner Hotel in Malaysia
Garner Hotel Kota Kinabalu will be the first Garner property in Malaysia.
IHG said the brand has more than 110 hotels open globally and is focused on travellers seeking dependable quality at an affordable price point. Its model is designed around core stay essentials, including comfortable rooms, sleep quality and breakfast, alongside local elements reflecting each destination.
The brand also uses a conversion-focused model aimed at allowing existing hotel properties to join the portfolio.
For Kota Kinabalu, the 202-room hotel will open in two phases. The first 106 rooms are scheduled for 2027, with the remaining 96 rooms planned for 2029.
Holiday Inn Express Tawau to Open in 2028
Holiday Inn Express Tawau will become IHG’s first property in Tawau after the refurbishment of King Park Hotel Tawau.
The 140-room hotel is scheduled to open in 2028.
Holiday Inn Express is IHG’s Essentials brand, with more than 3,300 hotels open and more than 660 properties in the pipeline globally, according to the company.
The brand targets both business and leisure travellers. Its offering includes accommodation, spaces for guests to rest and recharge, and a complimentary Express Start™ breakfast.
King Park Plans Two IHG Hotels in Sabah
A spokesperson for King Park Hotel Sdn. Bhd. said the company expects the two projects to create new opportunities in Kota Kinabalu and Tawau.
“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.”
The company cited Kota Kinabalu’s role as a gateway to destinations including Mount Kinabalu and Tunku Abdul Rahman Marine Park. It also pointed to Tawau’s commercial role on Sabah’s east coast and its access to diving and nature attractions.
IHG Malaysia Portfolio to Exceed 20 Hotels
The two signings will take IHG’s Malaysia portfolio to more than 20 open and pipeline hotels across city and resort destinations.
These include Johor Bahru, Kuala Lumpur, Kuching, Melaka and Penang.
Upcoming IHG properties in Malaysia include InterContinental Penang Resort, which will involve the transformation of the former Mutiara Beach resort, and voco Muar, which will be the second voco hotel to open in Malaysia.
Related Coverage
IHG Brings Garner Hotels to Southeast Asia with Exciting Debut in Pattaya
Garner Hotels Debuts in Greater China with First Opening in Beijing
Minor Hotels Announces Avani Kota Kinabalu in Malaysia
Holiday Inn Express Has Launched Its Latest 5.0 Product Model “Dawn”
IHG’s Holiday Inn Express Singapore Clarke Quay Sets Asia First as Low Carbon Pioneer
