Conversions drive 60 percent of IHG’s Q1 openings

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.

Also, the company expects Ruby, its recently acquired European boutique brand, to be franchise-ready in the U.S. later this year and plans to open more than 120 branded hotels in the next decade, IHG said in a statement.

The early 2025 acquisition of Ruby, 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.