Saudi Arabia’s Hospitality Sector Set to Elevate with Arrival of Hotel Indigo & Residences in Alkhobar
In a groundbreaking management agreement between IHG Hotels & Resorts and REFAD Real Estate Co., a new luxury hotel brand is primed to make its debut in the Saudi hospitality scene. The deal, inked at the Future Hospitality Summit in Riyadh, will see the arrival of Hotel Indigo & Residences in Alkhobar by September 2027, boasting 200 keys and serviced apartments.
Haitham Mattar, the managing director at IHG Hotels & Resorts in India, Middle East, and Africa, shared insights with Arab News, highlighting the hotel’s strategic location on the Alkhobar corniche. The partnership with REFAD promises to infuse authentic cultural experiences within the property, aligning perfectly with Saudi Arabia’s brand positioning.
With five Hotel Indigo hotels already signed in the Kingdom, Mattar emphasized the brand’s expansion into the Middle East, citing the success of an existing Hotel Indigo in Dubai. The agreement with REFAD not only bolsters IHG’s presence in Saudi Arabia but also underscores its dedication to delivering exceptional hospitality experiences in key markets.
Looking ahead, Mattar elaborated on the significant investment plans for the Saudi hotel industry, including a massive SR2.5 billion ($667 million) earmarked for renovating and upgrading existing properties. The ministry’s mandate to enhance the hotel product aligns with the country’s ambitious tourism goals of attracting 150 million visitors by 2030.
The focus remains on the Intercontinental brand, with a robust pipeline of 39 new hotels set to open across the region. From Makkah and Madinah to secondary markets like Abha in the Asir region, IHG is poised to cater to diverse traveler preferences. As part of Saudi Arabia’s tourism strategy, the emphasis is on developing key destinations that showcase the country’s natural assets and cultural heritage.
Hotel Indigo & Residences in Alkhobar will offer guests a plethora of dining options, including the Neighborhood Café and Lobby Lounge, along with an Executive Lounge for a varied culinary journey. Business travelers can make use of five meeting rooms and a spacious ballroom equipped with state-of-the-art technology, ensuring a seamless experience for all visitors.