Jeddah — Holiday Inn Jeddah Al Naseem is scheduled to open in June 2026, joining IHG Hotels & Resorts’ expanding portfolio in Saudi Arabia in alignment with Vision 2030 targets to diversify the economy and develop the tourism and hospitality sectors.
The property comprises 222 rooms across two newly constructed buildings and sits at the heart of Jeddah’s busy Al Naseem district, serving both business and leisure travelers through its proximity to the city’s commercial centers, retail complexes, and major healthcare facilities. IHG signed the hotel’s management agreement in April of last year with owner Hassan Salem Al Zahrani, making the upcoming opening the culmination of a development process spanning more than a year.
The Open Lobby Concept
The hotel adopts the next-generation Holiday Inn “Open Lobby” concept — a design that redefines the traditional hotel lobby by converting it into a single flexible space that integrates reception, restaurant, café, and workspaces, enabling guests to work, dine, and unwind without friction. The concept targets the modern traveler seeking a seamless transition between work, accommodation, and leisure within the same environment.
Holiday Inn ranks among the most widely distributed and trusted hotel brands globally, with more than 1,200 operating properties. The brand has continuously refined its standards over the years, placing the guest at the center of its innovations.
A Pillar of IHG’s Saudi Strategy
The opening is part of a broader IHG expansion across the Kingdom. The group currently operates approximately 45 hotels under six brands — InterContinental, Crowne Plaza, Holiday Inn, Staybridge Suites, voco, and Six Senses — with more than 47 additional hotels in development or in the pipeline. The Al Naseem opening follows the launch of Holiday Inn Jeddah Corniche, a five-star property on Jeddah’s waterfront, reflecting the group’s focus on deepening its presence in the city across multiple segments.
At the time of the agreement signing, Haitham Mattar, IHG’s Managing Director for India, the Middle East, and Africa, affirmed that Saudi Arabia remains a pivotal growth market for the group and that the partnership reflects its commitment to supporting Vision 2030 by delivering world-class hospitality that meets evolving guest expectations.
A Hospitality Market in Expansion
The opening arrives as Saudi Arabia’s hospitality sector records strong growth. Market estimates put the Kingdom’s hospitality market at approximately $29 billion in 2026, up from around $27 billion in 2025, with projections pointing to approximately $40.5 billion by 2031 at a compound annual growth rate of roughly 7%. This growth is underpinned by record tourism figures: total trips — domestic and international — exceeded 115 million in 2024, surpassing the initial target of 100 million, as the Kingdom works toward welcoming 150 million visitors annually by 2030.
At the regional level, the Middle East hotel pipeline set a record in Q1 2026 at 717 projects and 177,000 rooms, representing year-on-year growth of 13% in projects and 12% in rooms. Jeddah occupies a prominent position in this landscape with 63 projects and approximately 14,764 rooms — growth of 26% in projects and 42% in rooms — reflecting an acceleration of hotel investment in the city as a major commercial and leisure gateway and an entry point to the holy cities.
Mid-scale hotels such as Holiday Inn play a pivotal role in this expansion, meeting growing demand from domestic and international travelers seeking value for money, and growing at a notable pace in both primary and secondary cities. Holiday Inn Jeddah Al Naseem thus represents an addition that serves a broad segment of travelers while supporting the Kingdom’s targets to increase hotel capacity ahead of anticipated tourism growth in the coming years.
This report is based on the official IHG Group statement issued in April 2025, with an expected opening date of June 2026, and market data from sources specializing in the hospitality sector.
