Global hotels giant InterContinental Hotels Group has agreed a long-term commercial pact with Spanish leisure brand Iberostar.

Up to 70 hotels, representing 24,300 rooms, will be added to IHG’s system under the Iberostar Beachfront Resorts brand.

This will IHG’s 18th brand, boosting its global portfolio by up to 3%.

The total gross revenue of the 70 hotels was approximately $1.3 billion in pre-pandemic 2019.

Majorca-based Iberostar will retain 100% ownership, preserving its autonomy and values, IHG said.

The first properties set to join the IHG system next month will give IHG guests increased choice in locations including Mexico, Dominican Republic, Jamaica, Brazil and the Canary Islands. 

Further hotels in Spain and other popular resort destinations in southern Europe and North Africa are due to be added over the next two years.

The portfolio of Iberostar properties will gain access to IHG’s distribution channels and One Rewards loyalty programme with more than 100 million members. 

In turn the deal will increase awareness of IHG brands with a new set of travellers, and meet a “clear desire” from guests and loyalty members for more resort destinations and the option of all-inclusive stays.

IHG chief executive Keith Barr said: “Guests have told us of their wish for increased choice of resort and all-inclusive destinations within our brand portfolio. 

“We are delighted to address that by working with such a well-respected, experienced and like-minded partner as Iberostar, and to see more amazing hotels join our system that continues IHG’s growth in so many of the world’s most attractive markets and destinations. 

“Iberostar has successfully developed a leading presence in beachfront and all-inclusive properties in the Caribbean, Americas, southern Europe and North Africa over many decades, and we are excited about the opportunities to further grow the brand’s footprint together.”

Iberostar Group chairman Miguel Fluxa added: “This strategic alliance will enable Iberostar Beachfront Resorts to benefit from IHG’s industry-leading technology, deep skills and global scale. 

“Retaining 100% ownership of Iberostar allows us to continue to generate differentiation in the hospitality industry with a long-term vision for our employees, clients, tour operators, distribution partners and local communities that have been loyal to us during all these years. 

“We will continue to stay true to who we are, preserving our philosophies and values of quality and sustainability.”