IHG Hotels & Resorts has signed a two-hotel agreement that will bring its Garner brand to Malaysia and introduce the group’s franchise operating model in the country. The deal with King Park Hotel Sdn. Bhd. covers two existing properties in Sabah, with openings planned between 2027 and 2029.
King Park Hotel Kota Kinabalu will be converted into Malaysia’s first Garner hotel, while King Park Hotel Tawau will undergo an extensive refurbishment before reopening as a Holiday Inn Express.
Garner Hotel Kota Kinabalu to Open in 2027
Garner Hotel Kota Kinabalu will open in two phases. The first 106 rooms are scheduled to welcome guests in 2027, followed by another 96 rooms in 2029, bringing the total to 202.
The signing takes IHG’s combined portfolio of operating and planned hotels in Kota Kinabalu to five. The city is a key arrival point for visitors to Sabah, with access to attractions including Mount Kinabalu and Tunku Abdul Rahman Marine Park.
Garner is IHG’s midscale conversion brand, designed for existing hotels joining the group’s network. Its offering centres on comfortable rooms, breakfast and local touches, targeting travellers looking for dependable accommodation at an affordable price.
Holiday Inn Express Tawau Scheduled for 2028
The 140-room Holiday Inn Express Tawau is expected to open in 2028, becoming IHG’s first hotel in the city.
The project will involve an extensive refurbishment of the existing King Park Hotel Tawau. Once open, it will cater to business and leisure travellers, with the brand’s complimentary Express Start breakfast among its services.
Tawau is a commercial centre on Sabah’s east coast and a gateway for travellers heading to nearby diving and nature destinations. King Park’s spokesperson cited these connections as a reason for confidence in the city’s hotel market, alongside continued domestic and international demand in Kota Kinabalu.
IHG Introduces Hotel Franchising in Malaysia
The agreement also establishes IHG’s franchise operating model in Malaysia, opening another route for owners to convert existing properties to its brands.
Bryan Chan, IHG’s Vice President of Development for South East Asia and Korea, said franchising would support more conversion and repositioning opportunities across both independent and internationally branded hotels.
King Park Hotel Sdn. Bhd. is a subsidiary of Hass Enterprise Sdn. Bhd., a privately owned investment group based in Miri, Sarawak. The owner expects the partnership to strengthen both hotels’ market position through access to IHG’s global distribution network.
The two signings will expand IHG’s Malaysian portfolio to more than 20 hotels open or in development. Its presence spans city and resort destinations including Kuala Lumpur, Johor Bahru, Kuching, Melaka and Penang.
Other upcoming projects include InterContinental Penang Resort, a transformation of the former Mutiara Beach resort, and voco Muar, set to become Malaysia’s second voco hotel.
