IHG partners with SEDCO capital for 150-room Hotel Indigo debut in Jeddah’s Grand Square

SAUDI ARABIA – IHG Hotels & Resorts has signed a management agreement with SEDCO Capital to introduce Hotel Indigo Grand Square Jeddah, a 150-room property within Jeddah’s transformative Grand Square mixed-use development.

Strategic Development Overview

Located on King Abdulaziz Road, Grand Square integrates hospitality, retail, and office spaces through collaboration among Ajdan Real Estate Development Company, MASIC Investment Company, and SEDCO Capital.

Hotel Indigo anchors this vibrant hub, marking IHG’s first venture with the Saudi real estate fund.

Brand and Portfolio Expansion

Hotel Indigo embodies neighborhood-inspired design, capturing Jeddah’s cultural essence with local artistry and modern amenities.

IHG now manages 46 hotels across six brands in Saudi Arabia, targeting 60 additional openings in three to five years to capitalize on tourism momentum.

Alignment with National Vision

SEDCO Capital advances urban-economic growth via real estate assets, positioning the hotel to elevate Jeddah’s stature as a tourism gateway.

This initiative supports Saudi Vision 2030’s diversification goals, fostering hospitality innovation and visitor influx.

Regional Impact

The project enhances connectivity between business, leisure, and residential elements, drawing professionals and tourists to Jeddah’s evolving skyline while bolstering local employment and infrastructure.

IHG Hotels & Resorts has pursued aggressive expansion in Saudi Arabia and the MENA region through strategic partnerships and investments beyond the Jeddah Hotel Indigo project.

In 2025, IHG signed agreements for three new properties in Riyadh, including a 250-room Crowne Plaza and two Holiday Inns, partnering with local developer Al Rajhi Holding to tap into the capital’s business tourism surge.

Earlier this year, IHG collaborated with Emaar Hospitality Group on a luxury InterContinental in Dubai’s Downtown, blending high-end residences with 400 rooms focused on wellness amenities.

In Oman, IHG invested in a 300-room Vignette Collection resort in Muscat with Omran Group, emphasizing cultural heritage sites.

The company also deepened ties with Saudi’s PIF-backed entities, launching a 200-room avid hotels in Al Khobar with SEDCO’s sister funds, targeting mid-market growth.

Globally, IHG’s fast-track pipeline added 15 Saudi hotels since 2024, aligning with Vision 2030.

These moves reflect IHG’s strategy of co-branding with Sharia-compliant investors, leveraging loyalty programs like IHG One Rewards (over 130 million members), and prioritizing lifestyle brands (Indigo, Vignette) for 40% portfolio growth by 2028.

 Investments total $500 million in MENA renovations, ensuring competitive edges in sustainability and tech-integrated guest experiences amid rising regional tourism.

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