IHG Introduces Hotel Franchising in Malaysia as Garner Heads to Sabah

IHG Hotels & Resorts is introducing its franchise operating model in Malaysia for the first time through a two-hotel portfolio agreement with King Park Hotel Sdn Bhd. The move, reported on 28 September 2026, brings the Garner brand to Malaysia and paves the way for the group’s first presence in Tawau, Sabah.

Two Sabah hotels take centre stage

According to an IHG statement cited in the report, King Park Hotel Kota Kinabalu will be rebranded as Garner Hotel Kota Kinabalu. The hotel has 106 rooms, with a further 96 rooms expected to be operational by 2029.

The same agreement also covers King Park Hotel Tawau. Following extensive refurbishment, the property is scheduled to open as the 140-room Holiday Inn Express Tawau in 2028. The planned opening will make it IHG’s first hotel in Tawau.

Both projects involve converting existing hotels to brands within IHG’s portfolio. However, their scope differs: the Kota Kinabalu project includes rebranding and additional rooms, while the Tawau project involves extensive refurbishment before opening under its new name.

This distinction matters for readers following developments in the franchise sector. An agreement announcement does not mean that all the rooms or hotels mentioned are already operating under their new brands. The 2028 date refers to the planned opening in Tawau, while the 2029 target relates to the additional rooms in Kota Kinabalu. The report does not give a specific date for Garner Hotel Kota Kinabalu to begin operating.

A franchise model for hotel conversions

Bryan Chan, IHG’s Vice President of Development for South East Asia & Korea, described the introduction of the franchise model as an important milestone in the group’s growth strategy for South East Asia, particularly Malaysia.

He said the model would enable IHG to unlock more opportunities to convert and reposition hotel assets. These opportunities include independent hotels as well as properties previously operating under other international brands.

For Malaysia’s franchise sector, the key development is the wider choice of partnership options involving existing accommodation assets. In King Park Hotel’s case, the announced approach is not simply about introducing new hotel names, but rebranding two properties in different locations in Sabah.

However, the report does not detail franchise fees, agreement terms, owner eligibility requirements or the allocation of operational responsibilities. The introduction of this model should therefore not be interpreted as an offer with standard terms already available to all hotel owners. These commercial details need to be confirmed directly before any investment assessment is made.

Garner enters Malaysia as IHG expands in Sabah

The agreement with King Park Hotel Sdn Bhd also marks Garner’s debut in Malaysia. Kota Kinabalu is the announced location for the brand’s entry, through the rebranding of the 106-room hotel.

According to Chan, the agreement is expected to increase IHG’s presence in Kota Kinabalu to five hotels that are either operating or in the pipeline. This figure combines both categories; it does not mean that all five hotels are already open.

In Tawau, Holiday Inn Express will establish IHG’s first presence in the city. The scheduled opening in 2028 indicates that the project remains a planned development, with extensive refurbishment forming part of the conversion process.

Nationally, IHG said that, with the addition of these two hotels, the group has more than 20 hotels operating or in the pipeline in Malaysia. Its presence spans city and resort destinations. As with the Kota Kinabalu figure, this national total should not be read as the number of hotels already welcoming guests.

What hotel owners need to assess

This announcement provides a specific example of how a franchise model can bring existing hotels into an international brand network. The two King Park Hotel properties form the basis of this expansion, with rebranding, refurbishment and additional rooms among the announced components.

However, the available details are not sufficient to assess conversion costs or returns for other hotel owners. Room numbers and target opening dates indicate the scale and schedule of the projects, but do not explain the full financial commitment involved in a franchise agreement.

Practical guidance: Interested hotel owners can use this announcement as a starting point for discussions. Confirm the franchise terms, refurbishment requirements, costs and implementation timetable before making a decision, and distinguish between announced agreements and operations that have actually begun.