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InterContinental Hotels Group (IHG) has signed a Master Development Agreement (MDA) with Saudi Arabian business conglomerate Al Hokair Group, which will see the debut of Holiday Express Inn in the kingdom.
The significant development was announced at the Arabian Hotel Investment Conference (AHIC) earlier this week. Over the next 15 years, at least 10 Holiday Express Inn hotels will be opened in Saudi Arabia. Under the new agreement, the first property will be a 200-room hotel based in Jeddah, followed by openings in various key cities across the country.
The agreement will complement IHG’s pipeline in the region and cement a partnership with the Al Hokair Group.
“IHG has a strong legacy in Saudi Arabia, which is a key market for us in the Middle East”
Speaking on the announcement, Pascal Gauvin, managing director, India, Middle East and Africa, IHG said: “IHG has a strong legacy in Saudi Arabia, which is a key market for us in the Middle East.
“We are proud to once again collaborate with our esteemed long-term partner, Al Hokair Group, to bring the Holiday Inn Express brand to the country, and further expand our offering to domestic and international travellers, alike.
“The tourism landscape in Saudi Arabia is rapidly changing and we are excited to leverage the huge growth opportunities that Saudi Vision 2030 presents, particularly given that one of the biggest pillars of the plan is to bring more tourism into the country.”
According to Gauvin, IHG is the largest hotel operator in Saudi Arabia with a strong portfolio of 31 hotels across 4 brands. With this signing, the brand is extending its consumer appeal by offering high-quality, yet affordable accommodation for travellers.
“This signing presents us with unprecedented opportunities to capture the volume segment”
Sami Alhokair, managing director, Al Hokair Group added: “We are delighted to further strengthen our partnership with a global leader such as IHG, who continue to be a trusted brand in Saudi Arabia.
“IHG’s portfolio aligns with our objective to strengthen our presence in the Kingdom as well as our commitment to Vision 2030.
“Holiday Inn Express is a world-renowned brand, offering great value to the guests, and in the absence of an adequate supply of mid-market hotels to cater to the increasing demand, this signing presents us with unprecedented opportunities to capture the volume segment.”
The four brands in Saudi Arabia include InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn and Staybridge Suites. Around the globe, however, there are currently about 2,600 Holiday Inn Express hotels with a further 766 due to open in the next three to five years.
