IHG Hotels and Resorts Partners with SEDCO Capital to Launch Hotel Indigo Grand Square Jeddah, Transforming New Hospitality Experience with One and a Half Hundred Key Lifestyle Hotel

Published on December 8, 2025

IHG Hotels & Resorts, one of the world’s leading hotel companies, has signed a management agreement with an investment fund managed by SEDCO Capital, a global multi-asset management and advisory firm, to launch Hotel Indigo Grand Square Jeddah. This 150-key lifestyle hotel represents another important milestone, standing as it does as the first collaboration between the global hospitality giant and the Saudi real estate investment fund.

The new Hotel Indigo Grand Square Jeddah will be part of the Grand Square mixed-use development, a landmark project located on King Abdulaziz Road in Jeddah. The development is the result of a strategic partnership between Ajdan Real Estate Development Company, MASIC Investment Company, and SEDCO Capital. This bold project has been designed to bring together hospitality, retail, and office spaces into one comprehensive destination that represents a new model of contemporary living in Jeddah.

A Flagship Lifestyle Property Reflecting Local Culture and Character

Hotel Indigo Grand Square Jeddah will be envisioned as a flagship lifestyle property, embodying the unique and creative design philosophy of the Hotel Indigo brand. The hotel will offer guests a neighbourhood-inspired stay, shaped by the culture, character, and energy of its surroundings. Each space will be thoughtfully designed to reflect the local culture, providing a truly immersive experience for visitors.

Guests will enjoy thoughtfully designed rooms, high-end amenities, and a welcoming atmosphere that blends creativity, comfort, and authenticity. The hotel’s emphasis on reflecting Jeddah’s local vibe through its design and services will allow it to stand out as a premium destination for both business and leisure travelers in the heart of Saudi Arabia.

Luxury Tourism Impact: Enhancing Jeddah’s Appeal as a Premium Destination

The launch of Hotel Indigo Grand Square Jeddah is poised to have a significant luxury tourism impact on the region. As Saudi Arabia positions itself as a luxury tourism hub under Vision 2030, the introduction of high-end lifestyle hotels like Hotel Indigo will elevate Jeddah’s appeal to international luxury travelers. This development is set to contribute to the growth of Saudi Arabia’s luxury tourism market, which has seen increasing demand for high-end accommodation and exclusive travel experiences.

Jeddah, with its rich cultural heritage and proximity to Mecca—a key destination for pilgrimage tourism—is already a major player in Middle Eastern tourism. The addition of luxury hotels like Hotel Indigo will not only attract more affluent visitors but will also help elevate the city’s status as a luxury destination within the broader Saudi tourism landscape. With the city’s emphasis on cultural richness, modern luxury, and experiential travel, Hotel Indigo Grand Square Jeddah will play a pivotal role in shaping the future of luxury tourism in Saudi Arabia.

Tourism Impact: Strengthening Jeddah’s Position in Global Hospitality

The opening of Hotel Indigo Grand Square Jeddah is part of IHG’s larger strategy to expand its footprint in Saudi Arabia and the Middle East. With luxury tourism on the rise, particularly among European, American, and Asian travelers, this new property will provide a premium offering that caters to the needs of high-end visitors.

This development is expected to have a far-reaching impact on the local economy, increasing demand for luxury services, fine dining, and cultural experiences. By attracting more international tourists, Hotel Indigo will help elevate Jeddah’s tourism sector, creating a ripple effect in hospitality, real estate, and local tourism businesses. Cultural tourism, in particular, will benefit, with more visitors eager to explore Jeddah’s historical landmarks, art galleries, and local traditions.

Enhancing the Luxury Experience with Personalized Services

The new Hotel Indigo Grand Square Jeddah will focus on offering personalized services for its guests, ensuring a high level of luxury and comfort. High-net-worth travelers and business executives will appreciate the exclusive amenities, private events, and tailored experiences available at the hotel, which caters to those looking for a seamless blend of efficiency and luxury.

The hotel’s commitment to personalized luxury experiences will also help position Jeddah as a leading destination for high-end travelers seeking bespoke travel services in Saudi Arabia. Whether visiting for business or leisure, guests will be treated to a level of comfort and service that aligns with the luxury tourism expectations of the modern traveler.

Sustainability and Eco-Friendly Luxury: Aligning with Saudi Arabia’s Vision 2030

As part of Saudi Arabia’s Vision 2030, which focuses on sustainability and eco-friendly tourism, Hotel Indigo Grand Square Jeddah will integrate green building practices, energy-efficient systems, and eco-conscious amenities into its operations. This approach aligns with the Kingdom’s broader goals of promoting sustainable tourism and reducing the environmental footprint of luxury hospitality.

By embracing sustainability, Hotel Indigo ensures that it offers guests a luxurious experience without compromising on environmental responsibility. This makes the hotel an attractive option for eco-conscious luxury travelers who seek to minimize their environmental impact while enjoying the best in comfort and luxury.

Looking Ahead: Long-Term Luxury Tourism Growth in Jeddah and Saudi Arabia

The Hotel Indigo Grand Square Jeddah is poised to be a cornerstone of luxury tourism in the region, contributing to Jeddah’s emergence as a leading destination for affluent travelers. The opening of this high-end property marks a new era in Saudi Arabia’s luxury tourism sector, one that blends modern luxury with cultural authenticity.

Looking forward, the success of Hotel Indigo could inspire further developments in the luxury tourism market, encouraging other high-end brands to establish a presence in Saudi Arabia. The country’s tourism landscape is set for continued growth as it attracts more international tourists seeking luxury, cultural immersion, and sustainability.

Hotel Indigo Grand Square Jeddah – A New Era for Luxury Tourism in Saudi Arabia

This agreement and the opening of Hotel Indigo Grand Square Jeddah mark an important milestone in IHG’s expansion into the Saudi Arabian market and in offering a world-class hospitality experience in line with sustainability principles to travelers. The project underlines how hospitality and real estate development go hand in hand, whereby tourism growth and economic prosperity must come together.

With Saudi Arabia’s tourism industry showing further increases, Hotel Indigo Grand Square Jeddah will be an integral part of Jeddah’s development as a world-class business and leisure destination. This project will transform the region and present a unique, authentic experience for visitors right at the center of Saudi Arabia’s economic and cultural hub.

Image Source: IHG Hotels & Resorts