IHG & Iberostar double down on all-inclusive resorts, ink licensing deal

InterContinental Hotels Group (IHG) is doubling down on the all-inclusive resort market, announcing a long-term partnership with Iberostar Hotels & Resorts on Monday (Nov. 21)

The alliance will see Iberostar retain 100 per cent ownership while up to 70 hotels (24.3k rooms) will be added IHG’s system under the Iberostar Beachfront Resorts brand, which will become the 18th brand for IHG, according to a press release.

This will, in turn, boost IHG’s global system size by up to three per cent.

The first properties set to join the IHG system this December will give IHG guests increased choice in hot locations including Mexico, the Dominican Republic, Jamaica, Brazil and the Canary Islands (Spain).

Further properties in Spain and other popular resort destinations in Southern Europe and North Africa are anticipated to join IHG’s system over the course of 2023 and 2024, the release says.

IHG guests will be able to book family-friendly premium offerings to adult-only luxury, at leading resorts including: Iberostar Grand Paraiso (Riviera Maya, Mexico); Iberostar Selection Hacienda Dominicus (Bayahibe, Dominican Republic); Iberostar Grand Rose Hall (Montego Bay, Jamaica); and Iberostar Selection Anthelia (Tenerife, Spain).

These add to IHG’s 260 resort properties that span brands including Six Senses, Regent, InterContinental, Kimpton, Hotel Indigo, Crowne Plaza, Holiday Inn and Holiday Inn Club Vacations.

IHG expands resort footprint

IHG has fewer than 20 resort properties in the countries where the Iberostar Beachfront Resorts properties are located, so the agreement significantly increases and broadens IHG’s resort footprint.

Iberostar will gain access to IHG’s enterprise platform, including its distribution channels and the IHG One Rewards loyalty programme with more than 100 million members.

IHG, meanwhile, will increase awareness of its current brands with new clientele while meeting “a clear desire from guests and loyalty members for more resort destinations and the option of all-inclusive stays,” IHG says.

The Iberostar Beachfront Resorts brand will be included in a new Exclusive Partners category in IHG’s brand portfolio, which will sit alongside its Suites, Essentials, Premium and Luxury & Lifestyle categories.

Keith Barr, CEO of IHG Hotels & Resorts, said the company is “always looking at exciting, sustainable growth opportunities in areas that can further enhance our offer for guests and owners.”

“Guests have told us of their wish for increased choice of resort and all-inclusive destinations within our brand portfolio,” Barr stated. 

Sabina Fluxá, vice-chairman and CEO of Iberostar Group, said the alliance with IHG “combines our strengths, represents a decisive step forward in the distribution of Iberostar’s beachfront resorts, and reinforces our position as a benchmark in responsible tourism.”

“By working together we will grow our portfolio and we are really looking forward to hosting IHG loyalty members in our collection of premium and luxury beachfront resorts and all-inclusive properties,” Fluxá stated.

The agreement has an initial term of 30 years (with an option to renew for additional terms of 20 years) and gives IHG a licence to the Iberostar Beachfront Resorts brand.

A pipeline of six further Iberostar Beachfront Resorts properties, representing roughly 3,000 rooms, is also expected to be added to IHG’s pipeline. 

Don't miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook.