Officials during the signing of Hotel Indigo & Residences Al Khobar. Credit: © InterContinental Hotels Group.

IHG Hotels & Resorts has expanded its presence in Saudi Arabia with the signing of a new Hotel Indigo property in Al Khobar. 

The company reached a management agreement with Refad Real Estate Investment & Development Company, a part of Abdulhadi AlQahtani Sons Group, to launch the hotel by September 2027. 

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Hotel Indigo & Residences Al Khobar will be a key component of the Refad project, an upcoming mixed-use lifestyle destination in the Eastern Province. 

The new hotel will comprise more than 200 hotel rooms and serviced apartments as well as two dining venues, the Neighborhood Café and Lobby Lounge and the Executive Lounge. 

It will also feature five meeting rooms, a ballroom, a swimming pool, a gym, and a spa.

IHG India, Middle East and Africa, managing director Haitham Mattar said: “Al Khobar boasts a vibrant tapestry of economic vitality, cultural richness and scenic beauty, and offers a serene retreat for leisure seekers.  

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“With the upcoming Refad mixed-use development that will shape Al Khobar’s leisure, entertainment and hospitality offering, we are confident that Hotel Indigo & Residences Al Khobar will meet the varied preferences of guests. 

“This strategic addition not only fuels our growth in KSA but also reaffirms our commitment to providing exceptional hospitality experiences in key markets.”  

IHG currently operates 43 hotels across six brands in Saudi Arabia, with 32 hotels set to launch in the coming two to five years.

Across the globe, the company has 278 Hotel Indigo hotels that are open or in the pipeline. 

The signing in Saudi Arabia follows an agreement with Magnolia Quality Development Corporation Limited for a new 274-key Hotel Indigo property in Thailand.  

This property is slated to open in 2026.