The new Hotel Indigo will be located in the first residential community of Oxagon. Credit: InterContinental Hotels Group 2023.

IHG Hotels and Resorts has entered a franchise deal to open a new Hotel Indigo property in Oxagon, a floating city in Saudi Arabia’s NEOM.

IHG stated that the new 250-key Hotel Indigo property, scheduled to open in 2026, will be a lifestyle destination that will include retail and dining options, cafés and a pool lounge.

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It will also have a variety of wellness and leisure facilities, including a 24-hour fitness centre and a spa.

IHG India, Middle East and Africa managing director Haitham Mattar said: “We are delighted to announce our first IHG hotel in the exciting and rapidly developing region of NEOM.

“Hotel Indigo is dedicated to embracing the unique essence of each local destination, ensuring that our hotels truly embody the spirit of their locations.

“We are excited to announce the upcoming opening of this new property in Oxagon, where an innovative blueprint for industry and remarkable livability is being crafted.”

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At present, the company operates 37 hotels across five brands, including Holiday Inn, Voco, Crowne Plaza, InterContinental and Staybridge Suites, in Saudi Arabia.

This includes 31 hotels currently under development and expected to open within the next three to five years.

In March this year, IHG entered a management deal to open a new Hotel Indigo property in Mohammed Bin Salman Non-profit City, Riyadh, Saudi Arabia in 2025.