Boutique brand Ruby is expected to be franchise-ready in the U.S. later this year
IHG Hotels & Resorts nearly doubled global conversion signings from 2023 to 2024. Also, its recently acquired European boutique brand Ruby, pictured, will be franchise-ready in the U.S. later this year.
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
What drives IHG’s hotel conversion growth in the U.S.?
IHG HOTELS & RESORTS nearly doubled its global conversion signings from 2023 to 2024, with conversions accounting for about 60 percent of global openings and 40 percent of signings in the first quarter of 2025. IHG brands including Vignette Collection, voco hotels and Garner Hotels recorded highest openings and signings last year.
The early 2025 acquisition ofRuby, IHG’s 20th global brand, adds more than 30 hotels to the portfolio. Ruby’s “urban micro” model is used for new build, conversion and adaptive reuse projects across European cities, including openings in former office buildings and non-traditional commercial spaces, the statement said.
“Owners’ growing interest in converting hotels to IHG brands signals that they continue to see value in our brands and in the ability to plug into IHG’s enterprise system,” said Jolyon Bulley, IHG Americas CEO. “While new-build development will always remain important globally, our broad portfolio of soft brands and those suited for conversions across the chain scales give owners more choice and avenues for success.”
Conversion hotels give owners access to IHG’s enterprise, including marketing, technology, distribution and more than 145 million IHG One Rewards members, the statement said.
Brands target growth
Vignette Collection, launched in 2021 and targeting the luxury and lifestyle segment, is on track to nearly triple its global estate and has surpassed 60 percent of its goal to reach 100 hotels in its first decade, IHG said. After opening its first Americas location in Washington, D.C., in 2023, the brand expanded with an opening in San Francisco.
Similarly, voco hotels, catering to the premium segment, aims to reach 200 open or pipeline properties globally by 2028, supported by late 2024 openings in Atlanta, Tucson, Arizona, and Laguna Hills, California, the statement said.
Garner Hotels, launched in 2023, has surpassed 120 open and pipeline hotels and aims to quadruple its global reach in the coming years, it said. The brand has attracted owners with its competitive conversion cost per key, flexible design standards and lower pre-opening costs through a rapid conversion process. Recent openings include the 11th Americas Garner hotel in Panama City Beach, Florida.
IHG posted a 3.3 percent rise in global RevPAR for the first quarter of 2025, driven by 3.5 percent growth in the Americas, and recently opened the 110-key Crowne Plaza Lucknow, its 50th hotel in India.
North America recorded a 10 percent decline while Central America dropped 12 percent.
THE GLOBAL TRAVEL and tourism sector recorded an 8 percent year-on-year decline in total deal activity during the first half of 2025, according to market data firm GlobalData. Reduced investor appetite was seen across major deal types: mergers and acquisitions, private equity and venture financing.
GlobalData’s analysis shows venture financing deals fell by about 25 percent and private equity deals dropped by around 20 percent compared to the same period last year. M&A activity proved more resilient with a smaller 3.5 percent decline in volume. North America saw a 10 percent decline while Central America saw a 12 percent decline.
“The overall decline underscores a broader trend where macroeconomic factors and investor sentiments are reshaping deal-making strategies within the industry. The subdued activity suggests that dealmakers are becoming increasingly cautious, likely due to macroeconomic challenges and volatile market conditions,” said Aurojyoti Bose, lead analyst at GlobalData. “The decline in venture financing and private equity deals, suggests a dent in investor sentiment, emphasizing a trend of reduced risk appetite.”
The Asia-Pacific region posted growth, with deal volume rising 11 percent in H1 2025, driven by increased activity in Japan and India. In contrast, Europe saw a 19 percent drop, the Middle East and Africa fell 39 percent and South and Central America declined 12 percent.
Among major markets, the US, China and Germany all recorded declines in deal announcements while the UK maintained deal volumes at similar levels to last year.
GlobalData notes that historical figures may change if additional deals from earlier months are disclosed later.
Last year saw a 12.6 percent decline, with a total of 347 mergers and acquisitions, private equity and venture financing deals reported in the global travel and tourism sector during the first half of 2024.
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Vision held its Red Sand Project to combat human trafficking in Chattanooga, Tennessee.
It fights trafficking through partnerships, staff training and philanthropic support.
Tennessee reported 213 human trafficking cases in 2024, involving 446 victims.
VISION HOSPITALITY GROUP held its fourth annual Red Sand Project with WillowBend Farms to combat human trafficking in Chattanooga, Tennessee. The event brought together organizations working to combat human trafficking, including the Family Justice Center for Hamilton County and the Hamilton County Health Department.
“We were honored to stand with our partners and our community to bring attention to this issue,” Patel said. “Together, through awareness and action, we are working toward a future where every individual is safe, seen and supported.”
The Red Sand Project is a symbolic initiative to raise awareness and promote action on human trafficking, the statement said. Participants poured red sand into sidewalk cracks to represent victims who have fallen through the cracks of society. This year’s event came as the Chattanooga community reported progress in prevention and survivor restoration over the past year.
“The Red Sand Project reminds us that human trafficking continues to be a pressing public health issue and a devastating reality in every state,” said Jenelle Hawkins, Vision's director of operation excellence. “As members of the hotel industry, we understand our unique position to help identify and prevent trafficking. We are proud to be part of a community that is not only raising awareness but also driving real solutions. As we mark our fourth year, our commitment is stronger than ever.”
According to the Tennessee Bureau of Investigation, there were 213 reported human trafficking cases in Tennessee in 2024, involving 446 victims. Events like the Red Sand Project raise awareness, promote education and encourage community action.
Vision Hospitality Group combats trafficking through community partnerships, staff training and philanthropic support. In 2024, it donated $100,000 to the AHLA Foundation’s No Room for Trafficking Survivor Fund, which provides housing and job placement services to survivors nationwide.
If you know someone who needs help escaping trafficking, call the Tennessee Human Trafficking Hotline at 1-855-558-6484. To report a suspected victim, call the National Human Trafficking Hotline at 1-888-373-7888 or text 233722.
In June, Vision broke ground on a 150-key Hilton dual-brand in Lookout Valley, Chattanooga, Tennessee.
Choice Hotels International reported Q2 net income of $81.7 million.
Domestic RevPAR fell 2.9 percent due to macroeconomic conditions.
Extended-stay portfolio rose 10.5 percent YoY, with a domestic pipeline of 43,000 rooms.
CHOICE HOTELS INTERNATIONAL reported second-quarter net income of $81.7 million, down from $87.1 million a year earlier. Its forecast for the year remained positive, but was downgraded some to account for changes in macroeconomic conditions.
The company’s global pipeline exceeded 93,000 rooms, including nearly 77,000 in the U.S. Its global system size grew 2.1 percent, including 3 percent growth in the upscale, extended-stay and midscale segments, Choice said in a statement.
“Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy,” said Patrick Pacious, president and CEO. “We are especially pleased with our strong international performance, where we have achieved significant growth and accelerated global expansion through a recent strategic acquisition, the signing of key partnerships, and entry into new markets. With more diversified growth avenues, enhanced product quality and value proposition driving stronger customer engagement and a leading position in the cycle-resilient extended-stay segment, we remain well-positioned to deliver long-term returns for all our stakeholders.”
Domestic RevPAR declined 2.9 percent, reflecting macroeconomic conditions and a difficult comparison with 2024 due to the timing of Easter and eclipse-related travel, the statement said. Excluding those effects, RevPAR fell approximately 1.6 percent. Meanwhile, the domestic extended-stay portfolio outperformed the broader lodging industry by 40 basis points in RevPAR, while the economy transient portfolio exceeded its chain scale by 320 basis points.
Adjusted EBITDA rose 2 percent to $165 million, or $167 million excluding a $2 million operating guarantee related to the Radisson Hotels Americas acquisition. Adjusted diluted EPS increased 4 percent to $1.92, the statement said.
Expansion and development
The domestic extended-stay portfolio grew 10.5 percent year over year, with a pipeline of nearly 43,000 rooms as of June 30, Choice said. The combined domestic upscale, extended-stay and midscale portfolio grew 2.3 percent. WoodSpring Suites expanded 9.7 percent to nearly 33,000 rooms and ranked first in guest satisfaction among economy extended-stay brands in the J.D. Power 2025 study. The domestic economy transient pipeline increased 8 percent to more than 1,700 rooms.
Choice acquired the remaining 50 percent interest in Choice Hotels Canada for approximately $112 million in July, funded through cash and credit. The deal expanded its Canadian brand portfolio from eight to 22 and added 327 properties and more than 26,000 rooms. The business is expected to contribute approximately $18 million in EBITDA in 2025.
International activity included a renewed master franchise agreement with Atlantica Hospitality International in Brazil for more than 10,000 rooms; a direct franchise deal with Zenitude Hotel-Residences in France, which nearly tripled room count and two agreements with SSAW Hotels & Resorts in China. These include a 9,500-room distribution deal for 2025 and a master franchise agreement projected to add 10,000 rooms over five years.
Global net rooms for upscale brands increased 14.7 percent year over year, the statement said. The pipeline for these brands rose 7 percent since March 31 to nearly 29,000 rooms.
2025 outlook
Choice revised its RevPAR outlook to reflect more moderate domestic expectations due to macroeconomic conditions, the statement said. The adjusted EBITDA forecast includes a $6 million contribution from the Choice Hotels Canada acquisition for the remainder of 2025. It also reflects the $2 million Radisson-related operating guarantee payment incurred in the second quarter.
Net income guidance was lowered to a range of $261 million to $276 million, down from $275 million to $290 million. Adjusted net income remains at $324 million to $339 million.
Domestic RevPAR growth was revised to between negative 3 percent and flat, compared to the earlier range of negative 1 percent to positive 1 percent. The global net system rooms growth projection remains at approximately 1 percent.
In May, Choice reported 2.3 percent year-over-year growth in domestic RevPAR for the first quarter.
G6 Hospitality and Galaxy Hotels Group are expanding Motel 6 and Studio 6 in the U.S.
Galaxy said G6 brands outperform others in guest satisfaction and value.
One Galaxy hotel generates $8–10M annually; the full G6 portfolio is expected to reach $50M.
G6 HOSPITALITY AND Galaxy Hotels Group are now working to expand the Motel 6 and Studio 6 footprint in the U.S. About 10 Galaxy-managed hotels, totaling more than 1,300 rooms, will operate under the G6 brands, with more to follow.
G6 brands consistently outperform others in guest satisfaction and value, said Galaxy, which rejoined the G6 network after a short break.
“This partnership marks a new chapter in our mission to deliver modern, value-driven hospitality, as we now proudly rejoin G6 Hospitality," said Carlos Cuevas, Galaxy Hotels' COO. "Having previously moved from Choice Group/Park Inn by Radisson, we’ve closely compared the performance of various franchises. Our experience and data show that G6 brands consistently outperform others in guest satisfaction and value. This is why we’re back."
Recent additions include Studio 6 Suites Las Vegas with 308 rooms, Motel 6 Las Vegas – I-15 Stadium with 139 rooms and Motel 6 Las Vegas – Boulder Highway with 160 rooms, the companies said. Studio 6 Suites Las Vegas on the Strip, with more than 300 rooms, will be one of the largest Studio 6 hotels in the U.S., while Motel 6 Las Vegas is also near the Strip and Allegiant Stadium. The portfolio also includes Motel 6 hotels in Modesto, San Jose and Santa Rosa, California and Lakewood, Fort Collins, Thornton and Colorado Springs, Colorado.
Texas-based Galaxy Hotels Group, founded in 1999 and led by CEO Jagmohan “Jag” Dhillon, operates more than 41 hotels in the U.S. One Galaxy hotel in the G6 network generates $8 to 10 million in annual revenue. The full G6 portfolio is expected to reach about $50 million.
OYO CEO Ritesh Agarwal is chair of G6 Hospitality and Sonal Sinha is its CEO. OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans 150 more by year-end.
AHLA Foundation held its No Room for Trafficking Summit and announced Survivor Fund grantees.
The summit featured expert panels and sessions on survivor employment and trafficking prevention.
Since 2023, the program has awarded more than $2.35 million to 27 organizations.
AHLA FOUNDATION RECENTLY held its annual “No Room for Trafficking Summit” to advance practices and reinforce the industry's commitment to addressing human trafficking through collaboration, education and survivor support. It also announced the 2025–2026 NRFT Survivor Fund grants, which support organizations providing services and resources for survivors.
The event aligned with the United Nations World Day Against Trafficking in Persons on July 30 and convened survivors, experts and industry leaders, AHLA Foundation said in a statement.
"For years, the No Room for Trafficking initiative has leveraged our resources to unite the hotel industry against human trafficking,” said Kevin Carey, AHLA Foundation president & CEO. “The NRFT Summit serves as a powerful call-to-action, bringing together the industry and our partners to strengthen our commitment and drive meaningful change.”
The NRFT Survivor Fund supports community-based anti-trafficking organizations and initiatives, the statement said. Since 2023, it has awarded more than $2.35 million to 27 organizations nationwide.
This year’s grantees include two survivor-founded groups and others focused on prevention and survivor support, including:
3Strands Global Coalition to Abolish Slavery & Trafficking
Empowered Network
Hoola Na Pua
New Friends New Life
Rebecca Bender Initiative
Restore NYC
Safety Compass
Salt & Light Coalition
UMD Safe Center
Wellspring Living
"The organizations supported through the No Room for Trafficking Survivor Fund are doing essential work to prevent human trafficking and support survivors," said Joan Bottarini, chief financial officer at Hyatt and chair of the NRFT Advisory Council. "Their expertise—especially the voices of those with lived experience—continues to shape how our industry engages as part of the solution to this global issue.”
The NRFT Advisory Council and Survivor Fund supporting companies include Aimbridge, Choice Hotels, Extended Stay America, Hilton Global Foundation, Hyatt Hotels Foundation, IHG Hotels & Resorts, The J. Willard and Alice S. Marriott Foundation, Marriott International, Real Hospitality Group, Red Roof, Sonesta, Summit Foundation, Vision Hospitality Group and Wyndham Hotels & Resorts.
The summit included keynotes and panels featuring lived experience experts on survivor employment and sessions with vendors and industry stakeholders on trafficking prevention.
In July 2024, AHLA Foundation granted $1 million to eight community-based organizations through the Survivor Fund at the third annual NRFT Summit.