(Alliance News) - InterContinental Hotels Group PLC on Monday celebrated a new long-term commercial alliance with Spanish multinational tourism business Iberostar Hotels & Resorts SL, for access to its resorts and all-inclusive hotels.

The agreement, which has an initial term of 30 years, gives the Buckinghamshire, England-based global hospitality company licence to the Iberostar Beachfront Resorts brand.

InterContinental expects the deal to add up to 24,300 rooms across 70 properties to its system over the next two years. Of these, 8,200 rooms, or 27 properties, would still require additional approvals from third parties.

The company estimated that the properties would boost the size of its global system by 2.8%.

The first properties set to join the system this December will give guests the opportunity to book rooms in locations including Mexico, the Dominican Republic, Jamaica, Brazil and the Canary Islands.

Further properties in Spain and other popular resort destinations in Southern Europe and North Africa are anticipated to join InterContinental's system over the course of 2023 and 2024.

A pipeline of six further Iberostar Beachfront Resorts properties, representing around 300,000 rooms, is also expected to be added to InterContinental's pipeline.

Under the agreement, Iberostar's portfolio of properties will gain access to InterContinental's enterprise platform, including its distribution channels and the IHG One Rewards loyalty programme with more than 100 million members.

InterContinental will receive marketing, distribution, technology and other fees in a manner similar to its existing asset light model.

Its fee structure will ramp-up over a period through to 2025, as the hotels increasingly integrate onto its platform. By 2027, InterContinental expects annual revenue recognised within its fee business in excess of USD40 million.

"This strategic alliance will enable Iberostar Beachfront Resorts to benefit from IHG's industry-leading technology, deep skills and global scale," said Iberostar Chair Miguel Fluxa.

"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."

Looking ahead, the net impact on the company's operating profit from reportable segments is expected to be "modestly negative in 2022 and 2023.

InterContinental then expects it to turn positive in 2024, ramping up from 2025 with the final step up in the fee structure and the expected shift in distribution channel mix.

InterContinental shares were trading 0.8% higher at 4,776.00 pence each in London on Monday morning.

By Holly Beveridge; hollybeveridge@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.