IHG Boosts Middle East Expansion as Saudi Hotel Pipeline Reaches 65 Properties

IHG Hotels & Resorts is already ahead of its 2026 hotel signing target, supported by agreements across the UAE, Saudi Arabia, Egypt and India, as the group continues to grow despite recent disruptions to regional travel.

Haitham Mattar, Managing Director of IHG IMEA, said the company had secured a substantial number of signings earlier this year, although it was not unveiling any major new deals at Arabian Travel Market.

“We’re ahead of our signing target for the year,” Mattar said. “Our signings have been predominantly from the UAE, Saudi Arabia, Egypt, and India.”

Saudi Arabia remains one of IHG’s biggest development markets, with 65 hotels currently under development or in the pipeline, according to Mattar.

Makkah and Madinah continue to account for the kingdom’s largest development markets in terms of scale and demand, while both destinations maintained strong business activity during the recent travel disruption.

IHG expands hotel pipeline

Mattar said he does not expect Saudi Arabia’s rapid hotel development to result in a structural oversupply, citing the government’s tourism growth ambitions and anticipated visitor demand.

The group currently operates 10 hotels in the country, with a further 28 properties in its development pipeline, Mattar said. Expansion is extending beyond Cairo to locations including the New Administrative Capital, North Coast, Ain Sokhna and Aswan.

India is another key growth market for IHG. Mattar said the company currently operates 55 hotels in the country, with approximately 60 to 64 additional properties in the pipeline.

The expansion is taking place as hotel demand across the region continues its recovery.

Citing IATA figures, Mattar said inbound traveller numbers across the region were 48 per cent lower at the start of the disruption in April, before the shortfall narrowed to 9 per cent by July.

“We are recovering, but we’re not anywhere ahead of last year. We’re not even at last year,” he said.

IHG has recorded a notable increase in business travel bookings for October, November and December, while hotels in Dubai were also reporting strong occupancy levels during Arabian Travel Market.

Domestic tourism has been a key factor in supporting the hospitality sector during the downturn.

“We’ve learned through crisis, through disruption, the domestic market is what really saves the industry,” Mattar said.

He said domestic tourism and inter-regional corporate travel were among the two segments providing particularly strong support to the hospitality industry.

“In Saudi Arabia, it’s 70 per cent domestic. India, 70 per cent domestic,” he said, noting that populous markets such as Saudi Arabia, India and Egypt generally have a significantly stronger domestic tourism base.