InterContinental Hotels Group (IHG) has signed a Master Development Agreement (MDA) with Saudi Arabian business conglomerate, Al Hokair Group, and will debut the Holiday Inn Express brand in Jeddah, Saudi Arabia. The first hotel, according a statement from IHG, will feature 200 hotel rooms.
Through the agreement, IHG will also rollout at least 10 Holiday Inn Express hotels in various cities across the kingdom over the next 15 years, the hotel company revealed at Arabian Hotel Investment Conference 2018 (AHIC). All of the 10 hotels will be operated under long-term franchisee agreements, the statement added. At present, Al Hokair Group operates six Holiday Inn hotels in Saudi Arabia.
Commenting on the brand debut, IHG managing director for India, Middle East and Africa, Pascal Gauvin said that the launch offers the hotel company an ability to “leverage huge growth opportunities that Saudi Vision 2030 presents” with growing focus on the kingdom’s tourism sector.
“We are the largest operator in Saudi Arabia with a strong portfolio of 31 hotels across 4 brands, offering specialized stay experiences to varied guests’ profiles, and with this signing, we are further extending our consumer appeal by offering quality, yet affordable accommodation for savvy travellers,” Gauvin said.
Al Hokair Group managing director Sami Alhokair noted that the brand debut aligns with the increasing demand for mid-scale value hotels in the kingdom.
“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 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,” Alhokair added.
In Saudi Arabia, IHG's four brands currently in operation includes InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn and Staybridge Suites.
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