INTERCONTINENTAL Hotels Group (IHG) has signed an exclusive franchise development agreement with Siraj Capital to develop the Holiday Inn Express brand in Saudi Arabia. A total of 12 new properties are set to open within five years.
The agreement was signed at the Jeddah office of Siraj Capital by John Bamsey, chief operating officer, InterContinental Hotels Group, Middle East & Africa, and Ibrahim Mardam-Bey, chief executive officer of Siraj Capital.
The deal follows the official opening of the Dubai Internet City property in November. IHG is opening on average two Holiday Inn Express hotels every week around the world.
Siraj Capital Ltd is acting on behalf of Rahala LLC, a Saudi Arabian limited liability company, under formation, which will be the asset owner of Holiday Inn Express in Saudi Arabia. The deal was brokered by Hospitality Management Services (HMS), which will operate the individual properties.
Speaking at the signing, Bamsey said, “The rapid global expansion of the Holiday Inn Express brand will now be reflected in Saudi Arabia thanks to the robust agreement we have signed with our partners Siraj Capital and Hospitality Management Services.
“We are currently witnessing a growing demand for limited service hotels in the Kingdom where budget conscious travellers seeking satisfactory levels of amenities and service currently turn to more expensive accommodation options.”
Said Bamsey, “It is an ideal time to be investing in the bourgeoning Saudi Arabian market, where the tourism sector was expected to grow by 12.6 per cent in 2007 and by 6.1 per cent per year between 2008 and 2017.”
Commenting on the agreement with IHG, Dr Ghassan Al Sulaiman, Siraj Capital’s chairman said, “We are thrilled to be working with IHG on this industry-leading development plan. Set to be located in Saudi Arabia’s major commercial cities and in future commercial hubs, the hotels will cater for a new breed of traveller looking for value for money and essential services.”