The pact will see up to 70 hotels – which represents 24,300 rooms – under the Iberostar Beachfront Resorts brand added to IHG’s global portfolio.

Spanish leisure brand Iberostar will retain 100% ownership of the properties, which posted a total gross revenue of $1.3 billion in 2019. 

The initial properties – based in Mexico, Brazil, the Canary Islands, Jamaica and the Dominican Republic – will join the brand in December and gain access to IHG’s distribution channels and loyalty programme

Additional hotels in Spain, southern Europe and North Africa are set to be added over the next two years.

Keith Barr, chief executive of IHG, said: "As we continue to expand the footprint of our world‑famous brands, we are always looking at exciting, sustainable growth opportunities in areas that can further enhance our offer for guests and owners.

"This agreement increases IHG’s system by up to 3%, which helps to deliver on our ambitions for system growth. We continue to explore further opportunities for growth with exclusive partners, demonstrating the strengths and attractiveness of IHG’s enterprise platform."