IHG Hotels & Resorts is accelerating its expansion across Europe, adding more than 32,800 rooms over the past three years and surpassing a key milestone of 150,000 rooms in the region. The growth reflects a favorable market environment, with Europe maintaining its position as the world’s most visited region and attracting significant investment into the hospitality sector.
In 2025 alone, IHG opened 102 hotels and signed agreements for 117 additional properties, bringing its total European portfolio to more than 1,230 open and pipeline hotels across over 40 countries. The expansion spans a wide range of segments, from luxury and lifestyle brands to essentials and extended-stay offerings, allowing the company to capture demand across diverse traveler profiles.
The broader backdrop has been supportive. Europe recorded nearly 793 million international arrivals in 2025, while hotel investment reached €27 billion, the strongest level since before the pandemic. This surge in demand has created opportunities for major hotel groups to scale rapidly, particularly in high-traffic urban and resort destinations.
Germany Emerges as a Core Growth Engine
Germany has become central to IHG’s European strategy, accounting for more than 20 percent of both its existing rooms and development pipeline. As one of Europe’s largest domestic and outbound travel markets, Germany plays a dual role, driving both local demand and feeding traffic into the company’s broader network.
Cities such as Berlin, Munich, and Frankfurt are key focal points, supported by strong business travel demand and growing leisure interest. The scale of IHG’s presence in Germany also enhances brand visibility across the region, helping to reinforce performance in neighboring markets. Within Europe, only the UK and Ireland surpass Germany in terms of IHG’s overall footprint.
At the same time, the company is continuing to expand its brand portfolio across multiple segments. Recent openings include high-profile luxury and lifestyle properties, alongside growth in premium and essentials brands. Extended-stay concepts are also gaining traction, reflecting rising demand for longer-term accommodation in major European cities.
Conversions Power Faster Expansion
A defining feature of IHG’s recent growth has been its increasing reliance on hotel conversions. In 2025, conversions accounted for 84 percent of room openings and 61 percent of new signings in Europe, highlighting a shift in how hotel companies scale their presence.
For property owners, conversions offer a faster and lower-risk route to market compared to building new hotels. By joining IHG’s system, independent hotels can tap into established brands, global distribution networks, and loyalty programs, improving occupancy and revenue potential. For IHG, the model allows for rapid expansion without the longer timelines and higher costs associated with new developments.
The approach also reflects broader industry dynamics, where competition for prime locations and rising construction costs are pushing operators toward asset-light strategies. By focusing on conversions and partnerships, IHG can grow its footprint while maintaining flexibility in a competitive market.
As travel demand across Europe remains strong, IHG’s expansion strategy positions it to capture continued growth across both established and emerging destinations.
