Jeddah and Al Khobar to See Over 1,700 New Hotel Rooms
Saudi Arabia is set to expand its hotel capacity in two major cities with the construction of three new properties. IHG Hotels & Resorts, working with local developer Ashaad Company, will open hotels in Jeddah and Al Khobar between 2028 and 2030. These projects will add more than 1,700 rooms, addressing increased visitor demand in both western and eastern parts of the country.
The new openings were announced at the Future Hospitality Summit 2025 in Riyadh. They include Hotel Indigo Jeddah Gate, InterContinental Al Khobar Al Hamra, and voco Al Khobar Al Andalus. All three will be managed by IHG. The sites were picked because more and more people are passing through these areas, and there’s a clear need for extra hotel rooms where crowds are already common.
This collaboration underscores our unwavering commitment to providing exceptional hotel experiences that strengthen the Kingdom’s standing as a premier global tourism destination, catering to both domestic and international guests. At Ashaad, we are honored to support the growth of the hospitality sector in alignment with the goals of Saudi Vision 2030, through innovative and outstanding projects that reflect the evolving aspirations of the market.
In Jeddah, the new Hotel Indigo will be built within a mixed-use development and offer 700 rooms near historic landmarks and administrative buildings. Two new hotels are coming to Al Khobar. One is an InterContinental with 326 rooms near the shopping areas. The other is a voco with 717 rooms located close to the waterfront. These new hotels should help during peak travel times by making it easier to find a place to stay close to the city’s busiest areas.
For international and regional travelers, these developments may offer more flexibility in planning urban trips within the Kingdom. Jeddah remains a major stopover for cultural, business, and religious visits, while Al Khobar continues to attract short-term visitors from nearby Gulf states. When things get busy, like during holidays or big events, these new hotels might make it easier for people to find a place to stay without all the usual booking stress.
The expansion is part of a broader effort to modernize travel infrastructure in Saudi cities beyond the capital. If you plan to visit Jeddah or Al Khobar soon, it looks like there will be more types of places to stay and they should be easier to reach than before. As travel in the region evolves, availability of well-situated accommodation will likely play a growing role in itinerary planning.