IHG Hotels and Resorts has signed a franchise agreement to open a Hotel Indigo property in the coastal industrial city of Oxagon in Saudi Arabia’s NEOM development.

Located in the northwest region of Saudi Arabia, the 250-key property will be situated in Oxagon’s first residential community and will open its doors in 2026.

IHG says that the Hotel Indigo property in Oxagon will be designed as a lifestyle destination offering retail and dining concepts including cafés, a pool lounge, and a specialty restaurant. Additionally, residents and visitors will have access to a range of leisure and wellness facilities including a spa and 24-hour fitness centre.

IHG currently operates 37 hotels across five brands in Saudi Arabia, including InterContinental, Crowne Plaza, Holiday Inn, Staybridge Suites, and Voco, with 31 hotels in the development pipeline set to open within the next three to five years.

Haitham Mattar, managing director for India, the Middle East and Africa at IHG said, “We are delighted to announce our first IHG hotel in the exciting and rapidly developing region of NEOM. Our lifestyle brand, Hotel Indigo, has seen great success in the kingdom with several signing in the past months. As our presence in the market continues to grow, we are committed to supporting the goals of Saudi Vision 2030.”

Last month IHG signed a management agreement to open a Hotel Indigo in Mohammed Bin Salman Non-profit City in 2025.

Oxagon’s neighborhoods will be fully walkable, with sustainable on-demand mass transit and micro mobility solutions. It will reportedly be home to a dedicated research and innovation campus and a next-generation sustainable port with a fully automated and integrated supply chain. Vishal Wanchoo, CEO of Oxagon, said, “Hotel Indigo’s vision to create a boutique neighborhood hotel reflecting Oxagon’s ethos of bringing people and technology together in harmony with nature, makes IHG the right partner for the first upscale property for our urban communities. As progress across our industrial and innovation ecosystems accelerate, these agreements ensure that exceptional hospitality experiences are available to tenants, residents, and visitors from the outset.”

Chris Newman, executive director for Hotel Development at NEOM, added, “Hotel Indigo has earned global recognition for its unmatched ability to blend character and comfort, infusing the unique spirit of each neighborhood it operates in. With this property, we want to capture the true essence of Oxagon’s innovative approach to the industry, its remarkable people, and the cutting-edge technology that defines it.”

Yotel to open hotel in Neom’s Oxagon development

In January, London-based hospitality brand Yotel said that it would be opening its first Saudi property in Oxagon by 2025. The 300-key hotel will showcase Yotel’s signature robotic concierges, motorised SmartBeds, and fully integrated technologies.


(Image: Supplied by IHG Hotels and Resorts)