Japan: IHG signs 14-hotel portfolio deal in Kyoto - Get updated on what's happening in tourism!

IHG Hotels & Resorts is significantly expanding its presence in Kyoto with a 14-hotel portfolio agreement covering 1,063 rooms. The deal with long-term partner GCP Hospitality, the hospitality arm of Gaw Capital Group, is one of the largest hotel conversion transactions in Japan in recent years.

The portfolio comprises 12 hotels that will operate under IHG’s Garner brand, one Holiday Inn Express and one unbranded property. All 14 hotels will undergo renovations and conversion, with phased openings planned during the next 12 months.

Twelve new Garner hotels for Kyoto

The agreement represents a major expansion for Garner, IHG’s midscale conversion brand launched globally in August 2023. The brand has already passed the milestone of 100 open hotels worldwide.

IHG introduced Garner to Japan in 2025 with three properties in Osaka. The new agreement will take the brand into Kyoto on a much larger scale and reflects the hotel group’s ambition to gain a stronger foothold in Japan’s established business hotel market.

“We are just starting to tap into Garner’s full growth potential in Japan as the business hotel segment is underpenetrated by international brands,” says Abhijay Sandilya, Managing Director, Japan & Micronesia, IHG Hotels & Resorts and CEO of IHG ANA Hotels Group Japan.

He sees opportunities well beyond Kyoto. “There is an opportunity to grow across the country in this space, and we are ready to work on more portfolios.”

Holiday Inn Express gains another Japanese property

The transaction also includes a Holiday Inn Express, making it the third signed hotel for the brand in Japan. It follows Holiday Inn Express Osaka City Centre - Midosuji and Holiday Inn Express Sapporo Susukino.

The combination of Garner and Holiday Inn Express allows IHG to expand particularly in the more affordable segment of the Japanese hotel market. Business hotels have traditionally been dominated by domestic operators and are characterised by compact, functional accommodation and consistent service standards.

According to Sandilya, conversion offers existing hotel owners a relatively rapid route into IHG’s international network. They gain access to the group’s marketing, technology and distribution systems as well as the IHG One Rewards loyalty programme.

“This is a true milestone signing for IHG in Japan with one of our long-term partners, GCP Hospitality,” Sandilya says. “With this agreement, we are expanding our mainstream presence quickly in Japan.”

IHG strengthens its position in Kyoto

The 14 hotels are located in key districts across Kyoto, including areas around Kyoto Station, Shijo and Gojo. Their locations provide access to major transport connections as well as many of the city’s cultural and tourism attractions.

IHG already operates several brands in Kyoto across different market segments. Its existing portfolio includes Six Senses Kyoto, ANA Crowne Plaza Kyoto, Holiday Inn Kyoto Gojo and Garner Hotel Kyoto Shijo Karasuma.

Adding the new portfolio will position IHG as one of the largest international hotel companies operating in Kyoto, a destination with strong domestic and international demand throughout the year.

Partnership with GCP Hospitality expands

The agreement also deepens IHG’s existing relationship with GCP Hospitality, which has been appointed to lead the management team for all 14 properties during their repositioning.

“Building on GCP Hospitality’s successful track record in Japan, we are pleased to expand our partnership with IHG through this historic portfolio agreement,” says Erwann Mahé, CEO of GCP Hospitality.

GCP Hospitality will manage the portfolio while drawing on IHG’s brands, distribution network and international scale. For IHG, the transaction provides an opportunity to add more than 1,000 rooms in one of Japan’s most important tourism destinations within a comparatively short period.

Image Credit: © AI generated illustration with material courtesy of IHG