Announced from Kota Kinabalu, the agreement between IHG Hotels & Resorts and King Park Hotel Sdn. Bhd covers two existing assets set to be repositioned under international brands. The owner is a subsidiary of Hass Enterprise Sdn. Bhd., a diversified private investment group headquartered in Miri, in the state of Sarawak.
For IHG, the signing represents a dual milestone: the introduction of Garner, its midscale conversion brand, and the rollout of its franchise model in Malaysia. It follows the recent signing of voco Muar, the city’s first internationally branded hotel, which had already highlighted the group’s interest in the country’s secondary cities.
Two assets repositioned in Sabah
Garner Hotel Kota Kinabalu, the result of rebranding the King Park Hotel Kota Kinabalu, will ultimately offer 202 rooms. A first phase of 106 rooms is due to open in 2027, followed by a second phase of 96 rooms in 2029.
In Tawau, the current King Park Hotel Tawau will undergo an extensive renovation before reopening in 2028 as a Holiday Inn Express with 140 rooms. It will be IHG’s first hotel in the city.
Franchising as a conversion lever
Bryan Chan, Vice President Development South East Asia & Korea at IHG, places the signing within a regional strategy. He said the introduction of franchising marks an important step in IHG’s growth in South East Asia, enabling the group to capture more conversion and repositioning opportunities, across independent assets as well as hotels already operating under international brands.
He also highlighted King Park’s experience as an owner and its knowledge of the local market, describing it as the right partner for these first two franchised hotels. He added that Garner Hotel Kota Kinabalu will take IHG’s open and pipeline presence in Kota Kinabalu from one to five hotels, while Holiday Inn Express Tawau gives IHG its first foothold in the city and strengthens its presence along Sabah’s growing tourism corridor.
Analysis – Franchising allows IHG to attract owners who already hold assets and local operational expertise, without going through a management contract. The approach is consistent with Garner’s positioning as a conversion-led brand, which the group is rolling out across several markets, as illustrated by the franchise agreement signed for Garner Hotel Ahmedabad Motera in India.
Kota Kinabalu and Tawau, two complementary markets
On the owner’s side, a spokesperson for King Park Hotel Sdn. Bhd noted that Kota Kinabalu continues to attract strong international and domestic demand, driven by its role as Sabah’s gateway to Mount Kinabalu and Tunku Abdul Rahman Marine Park. Tawau, the commercial hub of the state’s east coast, benefits from its proximity to leading dive sites and natural attractions.
The spokesperson said the company was confident that aligning these hotels with globally recognised brands, and drawing on IHG’s global organisation and distribution platforms, would strengthen their market positioning and open up new growth opportunities.
Garner and Holiday Inn Express, two growth engines
With more than 110 hotels open worldwide, Garner is IHG’s fastest-growing new brand. Designed for travellers seeking reliable quality at an affordable price, it focuses on the essentials of a stay – comfortable rooms, quality sleep, a well-executed breakfast and local touches – while offering owners a flexible model suited to conversion. The brand is also continuing its expansion across Asia, as shown by its recent entry into Greater China.
Holiday Inn Express, the group’s most dynamic Essentials brand, has more than 3,300 hotels open and more than 660 in the pipeline worldwide. Built around simple, efficient travel, its offer caters to business and leisure guests alike, with a complimentary Express Start breakfast.
More than 20 hotels in Malaysia
With these two signings, IHG’s presence in Malaysia will rise to more than 20 open and pipeline hotels, spread across urban and resort destinations including Johor Bahru, Kuala Lumpur, Kuching, Melaka and Penang.
Upcoming openings include InterContinental Penang Resort, the conversion of the former Mutiara Beach Resort, and voco Muar, the brand’s second hotel in the country. International brands are steadily expanding in the market, as shown by Dusit International, which is opening Dusit Princess Ipoh, its third Malaysian property.
At a glance by The Hospitality Tribune
IHG debuts Garner and franchising in Malaysia
Two-hotel portfolio deal signed with King Park Hotel Sdn. Bhd, part of Hass Enterprise
Garner Hotel Kota Kinabalu: 202 rooms, 106 opening in 2027 and 96 in 2029
Holiday Inn Express Tawau: 140 rooms, opening 2028, IHG’s first hotel in the city
IHG’s Kota Kinabalu footprint grows from one to five open and pipeline hotels
Malaysia portfolio rises to 20+ open and pipeline hotels
