IHG plans luxury hotels in Red Sea project: report

Intercontinental Hotels Group (IHG) is planning to open luxury hotels in Saudi Arabia's planned Red Sea tourism project, The National reported, citing a senior company executive.

The company plans to take its top brands, potentially the Intercontinental Resorts or Regent hotel, to the 30,000-square-kilometer coastline tourism megaproject spread over a lagoon of 50 islands, said Pascal Gauvin, managing director of India, Middle East and Africa, IHG.

“We will be involved in the project in the Red Sea, we are working with them, we are looking at what brand will better fit their market, we are looking at what are their needs in terms of the environment and help them work in that direction,” he added. 

The first phase of the Red Sea project will include the development of hotels and luxury residential units as well as logistical infrastructure.

IHG expects to sign contracts for the deal “for sure” but discussions are still ongoing and more meetings are scheduled, Pascal said, adding it was “too premature” to put a number on the deal.

Initial groundbreaking at the Red Sea project is expected in the third quarter of 2019, with the first phase set for completion by the end of 2022.

Meanwhile, IHG is also starting preliminary talks to discuss opportunities in the NEOM project, a $500 billion mega-city unveiled by Prince Mohammed last year, Gauvin said.

Last week, Argaam reported that Hilton plans to increase it Saudi properties to over 40 from current 10 in the next five years, with focus on building few resorts in the Red Sea tourism project.