For this week’s Project of the Week here at THP.News, we want to introduce you to a new-build hotel project that is currently under construction and coming to Al Khobar, Saudi Arabia. So far scheduled to open in 2029, the five-star luxury development—from InterContinental Hotels & Resorts by IHG Hotels and Resorts—will offer 350 guest rooms.
Named InterContinental Al Khobar Al Hamra, the project is being developed by Ashaad Company. The hotel is designed by Open Space Engineering Consultancy, while interiors are being created by DN Design.
The hotel will be located next to the upscale Al Shubaily Grand Mall and is planned as a luxury base for visitors exploring Al Khobar and the wider Eastern Province. Al Khobar remains one of Saudi Arabia’s fastest-growing hospitality markets, making it an important location for new luxury hotel developments.
Part of a Major Saudi Expansion
The project was officially announced during the 2025 Future Hospitality Summit Riyadh, where IHG confirmed the signing of three new hotels in partnership with Ashaad. Alongside InterContinental Al Khobar Al Hamra, the agreement also includes voco Al Khobar Al Andalus and Hotel Indigo Jeddah Gate.
Together, the three hotels will add more than 1,700 rooms across Saudi Arabia between 2028 and 2030. According to IHG, the developments support the country’s wider tourism goals under Saudi Vision 2030, which continues to drive investment in hospitality, entertainment, and infrastructure projects across the Kingdom.
Haitham Mattar described the agreement as a major milestone for IHG in Saudi Arabia. He said the company’s growing portfolio of luxury and premium brands will help meet increasing demand from travelers visiting Jeddah and Al Khobar.
Ali bin Mohammed Al Ali also stated that the partnership reflects Ashaad’s commitment to delivering world-class hospitality projects that support Saudi Arabia’s tourism ambitions and long-term development plans.
