IHG Strengthens Its Franchise Strategy Across the Middle East and Africa
IHG expands its Middle East and Africa hotel portfolio through franchising, with 60 franchised hotels operating and 30 more in its development pipeline.
IHG Hotels & Resorts is accelerating its expansion across the Middle East and Africa through franchising, with all its new hotel signings in the UAE in 2024 operating under franchise agreements. Amith Khanna, Head of Franchise for India, Middle East & Africa at IHG, explains how the group is working with experienced local partners to expand its hotel portfolio while adapting its business model to different regional markets.
The franchise model is becoming an increasingly important part of IHG Hotels & Resorts' regional growth strategy. In an interview with Breaking Travel News, Amith Khanna highlights the opportunities offered by franchising in the Middle East and Africa, particularly in markets such as the United Arab Emirates and Saudi Arabia.
Franchising Drives IHG's Expansion in the UAE
The United Arab Emirates has become a particularly strong market for IHG's franchise strategy. According to Amith Khanna, 100% of the group's new hotel signings in the country in 2024 were secured through franchise agreements.
This performance reflects the maturity of the UAE hospitality market and the growing interest of hotel owners in working with established international brands.
Through its franchise model, IHG provides partners with access to its brand portfolio, technology, distribution systems, marketing resources and operational expertise. These services enable hotel owners to benefit from the group's international reputation while relying on local knowledge and investment.
Among the projects illustrating this strategy are Ciel Dubai Marina, a Vignette Collection property featuring more than 1,000 rooms, and the integrated resort signed with Aldar on Yas Island in Abu Dhabi.
These developments demonstrate how partnerships with experienced local investors can support the group's expansion while maintaining consistent brand standards and guest experiences.
A Global Franchise Network with Dedicated Regional Support
Franchising already represents a significant part of IHG's international operations. More than 80% of its hotels worldwide operate under franchise agreements, giving the group extensive experience in supporting franchise partners across different markets.
Franchisees benefit from IHG's global distribution network, technology infrastructure, marketing capabilities and dedicated support teams.
For the India, Middle East and Africa (IMEA) region, the group also relies on a dedicated franchise support structure. This regional organisation works closely with hotel owners to improve operational performance and support long-term business returns.
IHG's Franchise Centre of Excellence in the United Kingdom further strengthens this approach by providing franchise partners with specialised tools, resources and expertise.
60 Franchised Hotels Across MEA, with 30 More in the Pipeline
IHG currently operates 60 franchised hotels across the Middle East and Africa, representing approximately 30% of its total hotel portfolio in the region.
The group also has 30 additional franchised hotels in its development pipeline, expected to open over the following two to three years.
These figures highlight the growing importance of franchising in IHG's regional development strategy and the opportunities available to hotel owners and experienced operators interested in partnering with international hospitality brands.
Flexible Franchise Models for Different Regional Markets
According to Amith Khanna, the franchise model is expected to play an increasingly strategic role as the hospitality sectors in the Middle East mature.
Markets such as the UAE and Saudi Arabia offer favourable conditions for franchise development, supported by experienced investors and established hospitality infrastructures.
However, the same approach cannot necessarily be applied to every market. In emerging destinations, IHG is exploring more flexible and customised franchise agreements to accommodate the specific requirements of local partners while preserving its international brand standards.
In parts of Africa, where the hospitality sector is still developing, the group is also focusing on partnerships with experienced third-party management companies. These collaborations provide access to local market knowledge and operational expertise, helping IHG expand its presence in markets where its network remains less established.
Franchising: A Strategic Opportunity for Hospitality Investors
IHG's development strategy illustrates how international hotel groups are increasingly relying on franchising to expand their regional presence.
For investors and hotel owners in the Middle East, the model offers an opportunity to collaborate with established international brands while benefiting from their distribution networks, technology and expertise.
As the hospitality industry continues to evolve across the region, franchising is expected to become an increasingly flexible and important route for international hotel development.
Middle East Franchise Editorial Team