Dec. 9, 2009--JEDDAH -- InterContinental Hotels Group (IHG) and Saudi-based Siraj Capital signed a deal on Tuesday for establishing first three Holiday Inn Express hotels in Saudi Arabia. The three new hotels will be located on Madinah Road in Jeddah, Knowledge Economic City (KEC) in Madinah and King Abdullah Economic City (KAEC), under a master franchise agreement between IHG and Siraj. The deal envisages the establishment of 12 Holiday Inn Express hotels across the Kingdom over the next five years. Announcing the deal and the project locations, top IHG and Siraj executives said the first three Holiday Inn Express hotels offering 575 rooms would cost $50 to $60 million and were expected to be executed within the next 18 months. The first three Holiday Inn Express properties in Saudi Arabia will offer 575 rooms, with the hotel at Madinah Road, Jeddah offering 252 rooms, KAEC 183 rooms, and KEC 140 rooms.

"There is strong and growing demand for three-star hotels. Holiday Inn Express is the first limited service hotel brand to enter Saudi Arabia. The Kingdom receives around 12 million tourists a year and we are confident that by offering competitive pricing, quality accommodation and excellent service, backed by the confidence of an established global brand, the three-star brand properties will be a major success," John Bamsey, chief operating officer of IHG for Middle East and Africa, told a press conference at the Jeddah InterContinental Hotel. Bamsey and Ibrahim A. Mardam-Bey, CEO, Siraj Capital Ltd., signed the agreement.

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