IHG Hotels & Resorts, a leading hotel company, has announced the signing of a Management Agreement with Dallah Real Estate Company for a Hotel Indigo Resort in Durrat Al Arus, Jeddah.
With this signing, IHG continues to expand its lifestyle portfolio in the country to cater to the future demand from new guest segments, seeking Arabian experiences through Hotel Indigo’s neighbourhood story.
Due to open in early 2026, the hotel will be located in Durrat Al Arus, a recreational neighbourhood north of Jeddah. The resort will be part of a mixed-use development project consisting of a budding residential community, vast water frontage and man-made lagoons.
IHG and Dallah Real Estate Company will work in collaboration with design studios and research agencies to weave the ‘Neighbourhood Story’ into the DNA of the hotel.
Along with 271 rooms, the resort will also feature 50 private pool villas, a wellness facility, and home-grown food and beverage concepts that will not only offer a perspective to dining in Saudi Arabia – but also catch the interests of foodies and critics alike.
Dallah has also partnered with 17Sixty – a marine adventure company – to enable Hotel Indigo guests, and residents of Jeddah, to experience marine flora and fauna, keeping sustainability at its core. The company will also provide water sports activities to the guests.
Speaking on the announcement, IHG Managing Director, India, Middle East & Africa, Haitham Mattar said: “After debuting the brand in Riyadh, we are delighted to sign our second Hotel Indigo property in the country this year. In line with Saudi Vision 2030 and the country’s tourism strategy, our luxury and lifestyle brands are gaining a lot of interest from our partners and investors.
“We are confident that upon opening, these properties will be equally popular with domestic and international travellers and will add to the authentic experiences guests will be looking for while visiting Saudi Arabia. We are also honoured to once again partner with Dallah Real Estate Company, who boast a great deal of expertise in this sector.”
Dallah Real Estate Company Managing Director Abdulaziz M.A Yamani said: “Given IHG’s history and strong legacy in the Kingdom, we are pleased to partner with them to offer Saudi travellers and international guests a premium and authentic stay experience at Hotel Indigo Durrat Al Arus.
“The hotel will be positioned as a holistic destination for guests looking for adventure and an experiential stay. We are confident that this partnership will not only offer the best-in-class service to guests but also bring value to the business from IHG’s global systems and loyalty programme.”
IHG currently operates 37 hotels in Saudi Arabia across five brands including InterContinental, Crowne Plaza, Holiday Inn, Staybridge Suites and voco. A further 23 hotels are in the development pipeline, due to open in the next three to five years.
