IHG unveils a new brand that targets budget travelers — and will grow quickly
The battle over the budget traveler rages on in the hotel industry, but the latest option appears to have more amenities than some of its competitors also in development.
IHG Hotels & Resorts Wednesday officially unveiled their latest brand: Garner, a midscale hotel brand suited for “guests wanting value stays at high-quality properties,” according to a company statement.
The brand, which will grow quickly by appealing to hotel owners who want to convert their existing properties into Garner affiliation, is IHG’s 19th brand and will sit in the company’s Essentials Collection. This cluster of brands also includes other midscale options like Holiday Inn, Holiday Inn Express and Avid.
If you’re thinking the midscale space is getting a little crowded, IHG has a few differentiating points: Holiday Inn and Holiday Inn Express operate in the “upper midscale” segment while Avid and Garner sit more in the midscale lane. Avid hotels are always new-build properties while Garner will grow by converting existing hotels and could have more bespoke design depending on the location.
“Garner is another exciting step forward in the transformation of our brand portfolio, bringing to the midscale market a brand we know owners and guests want from IHG,” said IHG CEO Elie Maalouf in a statement.
IHG anticipates there will be 500 Garner hotels in the next 10 years in the U.S. alone, and that figure is expected to double by the 20-year mark. While rates can fluctuate by location and day of the week, Garner hotels will fall in a market segment where roughly $100 per night is the norm.
“We’ve designed this brand to deliver on what’s expected — a great night’s sleep in a clean, comfortable space, with a breakfast worth getting up for,” Jen Gribble, senior vice president of global marketing for IHG’s mainstream brands, said in a statement. “But how we deliver it will be different — from the warm and welcoming team to the lobby décor, our style is refreshingly approachable, which appeals to all types of guests.”
“Limited doesn't have to mean ‘no’ in service and that it doesn't have to be any less in personality or design,” Karen Gilbride, vice president of global brand management at IHG, added in an interview with TPG Wednesday afternoon. “It can mean doing things and doing them in a cost-effective way. But they matter.”
A midscale standout
There has been quite a bit of activity from Hilton, Hyatt, Marriott and IHG in the budget hotel space this year.
Hilton launched Spark, a premium economy brand also expected to grow rapidly due to conversions, at the start of the year. It also announced Project H3, an extended-stay brand, months later. Hyatt’s Hyatt Studios brand — which announced this week its first locations will be in Mobile, Alabama, and Marysville, California — gives the Chicago-based hotel giant a much-needed presence in the midscale space. Marriott has also been active in the space with its acquisition of Mexico-based City Express and the launch of its StudioRes extended-stay brand.
Garner appears to be differentiating itself in the space by leaning more toward high-quality offerings and amenities. There will be complimentary flavor-infused water and coffee offered at arrival, and — while Gilbride noted it won’t necessarily be the expansive spread seen at a Holiday Inn Express breakfast — Garner hotels will offer a free “Make It Yours” hot breakfast with options like breakfast sandwiches, egg bowls, fruit and a yogurt parfait.
There will also be guest-influenced playlists, snacks and drinks at each hotel as well as pet-friendly features like welcome treats and loaner items. Guests will also be able to enjoy a two-hour cookie "happy hour" in the lobby.
Among the recent additions to the midscale space, there has been a difference in whether brands would offer full loyalty benefits at their new, more affordable offerings. Garner will offer a "full IHG One Rewards experience," Gilbride said.
Why hotel companies want more budget offerings
Some might scratch their heads at the sudden seismic attention on budget brands. After all, it wasn’t that long ago when leaders of many of the major hotel companies touted their limited exposure to economy travelers in light of rising gas prices. Now, it seems like budget and economy travelers are precisely the business the major hotel companies covet.
The midscale segment in the U.S. today is a $14 billion market, IHG noted in its Garner launch. That figure is expected to swell to $18 billion in hotel revenue by 2030.
Money talks, and it’s telling the world’s largest hotel companies to do more to cater to the middle of the travel market.
Related reading:
- The award travelers guide to IHG Rewards
- The best credit cards to reach elite status
- What is IHG One Rewards elite status worth?
- Current offers on IHG One Rewards credit cards
- Which credit cards offer the most lucrative rewards for hotel stays?
- The best hotel rewards programs in the world
- Best hotel credit cards
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
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- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.