London-listed IHG Hotels & Resorts will open a new Hotel Indigo under franchise agreement in Oxagon, the coastal industrial city in Saudi Arabia’s $500 billion gigaproject NEOM.

Oxagon will establish the world’s first fully integrated port and supply chain ecosystem for NEOM.

The 250-key hotel will be in Oxagon’s first residential community and will open in 2026.

IHG, which is headquartered in Windsor, UK, said the hotel will be a lifestyle destination including retail and dining options, a spa and fitness centre.

Earlier this year, IHG announced another Hotel Indigo franchise in Mohammed bin Salman Nonprofit City, to open in 2025.

Haitham Mattar, managing director, India, Middle East & Africa, IHG, said: “As our presence in the market continues to grow, we are committed to supporting the goals of Saudi Vision 2030 by offering exceptional hospitality experiences to leisure and business travellers visiting the country.”

IHG operates 37 hotels in Saudi Arabia, including InterContinental, Crowne Plaza, Holiday Inn, Staybridge Suites and Voco properties, with 31 in development to open within the next three to five years, the company said.

(Writing by Imogen Lillywhite; editing by Seban Scaria)