DLA Piper has advised IHG Hotels & Resorts (IHG) on a long-term agreement with NOVUM Hospitality. The agreement will strengthen IHG’s presence in Germany to more than 200 hotels in almost 100 cities through a brand collaboration of Holiday Inn and the niu and European debuts for IHG’s Garner and Candlewood Suites brands.
The agreement with NOVUM Hospitality will provide IHG with a strong position in the midscale and upper midscale segment. Up to 108 NOVUM Hospitality open hotels and 11 hotels under development are expected to join IHG’s franchise system between 2024 and 2028. Conversion of the hotels to IHG’s franchise system will happen in phases beginning in 2024, with the majority to take place over the next 24 months.
A total of 52 open and pipeline hotels will join IHG through a distinctive collaboration between Holiday Inn and the niu. NOVUM Hospitality’s other Yggotel, Select and Novum brands will convert to IHG’s new midscale conversion brand, Garner, and the acora Living the City brand will convert to IHG’s midscale extended stay brand, Candlewood Suites.
NOVUM Hospitality will adopt IHG brands and systems for this entire portfolio, becoming one of IHG’s largest franchisees globally, with access to IHG’s commercial engine and technology platforms to drive hotel performance, efficient hotel operations and customer experience.
The DLA Piper team around relationship partner Dr Martin Haller (Real Estate, Munich) was jointly led by partner Gerald Schumann, counsel Dr Christoph Dachner (both Corporate/M&A, Munich) and senior associate Markus Kotowski (Real Estate/H&L, Munich).
From Germany, partners Semin O (Antitrust), Dr Burkhard Führmeyer (IP, both Frankfurt), senior associates Thomas Herbst (Real Estate, Munich), Ina Fey (Antitrust, Cologne), associates Angelina Krußig, Julia Ambs, Sabrina Wimmer (all Real Estate, Munich), Christian Cervellino (Real Estate), Marisa Machacek (IP, both Frankfurt) and Yolanda Ristau (Corporate/M&A, Munich) were also involved. From the international DLA Piper offices, partners Oskar Winkler (Finance, Vienna), Matthew Duncombe (IP, Leeds), Daniëlle van Berkel (Real Estate, Amsterdam), counsel Alexander Schultmeyer (Finance, Vienna), senior associate Axel Visschedijk (Real Estate, Amsterdam), attorney-at-law Michail Fouzailov (Finance, Vienna) and legal director Ben Taylor (Real Estate, London) supported the transaction.
In-house at IHG, the team was led by Simge Kocabayoglu (Senior Director, Legal Counsel Europe) and Rebecca Law (VP & Associate General Counsel for Europe).
