IHG Hotels and Resorts Partners With King Park Hotel to Launch Garner Kota Kinabalu and Holiday Inn Express Tawau in Sabah
IHG Hotels & Resorts debuts its franchise model and Garner brand in Malaysia, signing Garner Hotel Kota Kinabalu and Holiday Inn Express Tawau in Sabah.
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IHG Hotels & Resorts has signed a two-hotel portfolio agreement with King Park Hotel Sdn. Bhd. to introduce two properties in Sabah, Malaysian Borneo: the 202-room Garner Hotel Kota Kinabalu and the 140-room Holiday Inn Express Tawau. The strategic expansion marks two major operational milestones for IHG in Malaysia—the launch of its franchise business model and the national debut of its midscale conversion brand, Garner hotels.
Strategic Portfolio Specifications & Property Conversions
The partnership with King Park Hotel Sdn. Bhd. (a subsidiary of Sarawak-based Hass Enterprise Sdn. Bhd.) repositions two existing independent hotels under international IHG brand standards:
- Garner Hotel Kota Kinabalu: A 202-room conversion of the former King Park Hotel Kota Kinabalu. The hotel will reopen in two phases, launching 106 rooms in 2027 and an additional 96 rooms in 2029. The opening expands IHG's open and pipeline presence in Kota Kinabalu from one to five properties.
- Holiday Inn Express Tawau: A 140-room property undergoing a major refurbishment of the former King Park Hotel Tawau before opening in 2028. The conversion marks IHG's maiden hotel presence in Tawau.
The additions strengthen IHG's nationwide development pipeline, expanding its Malaysian footprint to over 20 operating and pipeline hotels across Kuala Lumpur, Johor Bahru, Kuching, Melaka, Penang, and Muar. Upcoming Malaysian developments include the InterContinental Penang Resort (rebuilding the former Mutiara Beach Resort) and voco Muar.
The development is supported by regional hospitality promotion from the Sabah Tourism Board, Tourism Malaysia, and official releases via the IHG Hotels & Resorts Newsroom.
| Property Name | Location / City | Room Inventory | Phased Opening Schedule | Brand Classification | Primary Tourism Corridors |
|---|---|---|---|---|---|
| Garner Hotel Kota Kinabalu | Kota Kinabalu, West Coast Sabah | 202 Rooms (106 + 96) | Phase 1: 2027 / Phase 2: 2029 | Midscale Conversion (Garner) | Mount Kinabalu & Tunku Abdul Rahman Marine Park |
| Holiday Inn Express Tawau | Tawau, East Coast Sabah | 140 Rooms | Opening 2028 | Upper Midscale Essentials | Sipadan & Mabul Island World-Class Diving Hubs |
| InterContinental Penang Resort | Penang Island | Resort Portfolio | Opening 2026/2027 | Luxury Beachfront | Penang Heritage & Batu Ferringhi Beach |
| voco Muar | Muar, Johor | Boutique Portfolio | Pipeline Project | Upscale Lifestyle | Johor Heritage & Commercial Travel |
Traveler Logistics & Sabah Transit Corridor Guide
Navigating Sabah's west and east coast tourism corridors involves established air and ground transit networks:
West Coast Access via Kota Kinabalu (BKI)
Kota Kinabalu International Airport (BKI) serves as the primary gateway to Sabah. Direct non-stop flights link BKI with regional hubs including Kuala Lumpur (KUL), Singapore (SIN), Seoul Incheon (ICN), Hong Kong (HKG), and Taipei (TPE). Garner Hotel Kota Kinabalu is located in the central business district, approximately 15 to 20 minutes from BKI via airport taxis or Grab ride-hailing services.
East Coast Access via Tawau Airport (TWU)
Tawau Airport (TWU) serves as the primary aviation entry point for east coast commercial centers and world-class diving destinations. Domestic flights connect TWU daily with Kuala Lumpur (KUL) and Kota Kinabalu (BKI) via Malaysia Airlines and AirAsia.
Excursion Transit to Mount Kinabalu & Dive Sites
- Tunku Abdul Rahman Marine Park: Accessible via a 15-minute boat ride departing from Jesselton Point Ferry Terminal in Kota Kinabalu.
- Mount Kinabalu National Park: Located 2 hours inland via the Ranau Highway; daily express minivans and private tours depart from central Kota Kinabalu.
- Sipadan & Mabul Island Diving: Travelers arriving at Tawau Airport (TWU) bound for Sipadan or Mabul islands take a 90-minute road transfer to Semporna Jetty, followed by a 45-minute speedboat transfer to island dive resorts.
Executive Perspectives & Brand Expansion Assessment
Bryan Chan, Vice President, Development (South East Asia & Korea) at IHG, noted:
"The introduction of franchising marks an important milestone in IHG’s growth across Southeast Asia, enabling us to unlock more conversion and repositioning opportunities across both independent and internationally branded hotel assets. We are delighted to launch IHG’s franchise model in Malaysia with a two-hotel portfolio agreement with King Park Sdn. Bhd. As experienced hotel owners with deep local market expertise, they are the ideal partner for our first two franchise hotels and will help create a strong foundation for long-term success. This agreement also introduces Garner hotels to Malaysia. Garner Hotel Kota Kinabalu will increase our open and pipeline presence in Kota Kinabalu from one to five hotels, while Holiday Inn Express Tawau gives IHG its first presence in the city and strengthens our footprint across Sabah’s growing tourism corridor. These are great additions to IHG’s Malaysia portfolio and reinforces our commitment to delivering high-quality stay experiences in the premium midscale segment."
A spokesperson for King Park Hotel Sdn. Bhd. added:
"We are excited to partner with IHG to introduce the first Garner in Malaysia and the first internationally branded hotel in Tawau. Kota Kinabalu continues to attract robust international and domestic travel, underpinned by its position as Sabah’s gateway to leading leisure destinations such as Mount Kinabalu and Tunku Abdul Rahman Marine Park. Tawau is a key commercial centre on the state’s east coast and its accessibility to world class diving locations and nature attractions presents Tawau with significant growth potential. We believe aligning these hotels with globally recognised brands and leveraging on IHG’s global enterprise and distribution platforms will strengthen their market positioning and unlock new opportunities for growth. We look forward to welcoming travellers to these two cities when they open."
Key Property & Brand Highlights
- Strategic Milestones: First IHG franchise agreement in Malaysia + nationwide debut of the Garner hotels midscale conversion brand.
- Garner Hotel Kota Kinabalu: 202 rooms total (Phase 1: 106 rooms in 2027; Phase 2: 96 rooms in 2029). Converted from King Park Hotel Kota Kinabalu.
- Holiday Inn Express Tawau: 140 rooms (opening in 2028 following refurbishment). Converted from King Park Hotel Tawau; first IHG property in Tawau.
- National Expansion: IHG portfolio expanding to over 20 operating and pipeline hotels across Malaysia.
Frequently Asked Questions: IHG Sabah Expansion (2026)
Which new IHG hotels are opening in Sabah, Malaysia?
IHG is opening Garner Hotel Kota Kinabalu (202 rooms, opening in phases in 2027 and 2029) and Holiday Inn Express Tawau (140 rooms, opening in 2028).
What milestones does this agreement represent for IHG in Malaysia?
The agreement marks IHG's first franchise model agreement in Malaysia and the national debut of its midscale conversion brand, Garner hotels.
How do travelers access Kota Kinabalu and Tawau hotels from regional airports?
Garner Hotel Kota Kinabalu is a 15-minute drive from Kota Kinabalu International Airport (BKI). Holiday Inn Express Tawau is accessible via Tawau Airport (TWU), serving as the gateway to Semporna and Sipadan diving hubs.
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