Located in the Riyadh North area, Saudi Arabia, the new property will be part of an advanced masterplan featuring high-end retail, offices and entertainment.
The hotel will boast 400-key hotel and serviced apartments and other amenities including dining options, multipurpose meetings and events rooms, a health club and a spa.
IHG said that the property will be strategically positioned to meet business and leisure demand.
The new hotel in Riyadh is slated to open by 2028.
IHG India, Middle East & Africa managing director Haitham Mattar said: “This Management Agreement of an exciting new build InterContinental property in Riyadh’s vibrant north district represents IHG’s commitment to support the growing tourism and hospitality ambitions of the Kingdom of Saudi Arabia, as part of Vision 2030.
“With new developments in leisure and entertainment sector across the country, and the introduction of e-visas and a new airline, Riyadh is ready to welcome more diversified tourists to the capital city.
“With a strong hotel portfolio across all guest segments and a growing regional office in Riyadh, we are prepared to cater to the needs of our owners and guests.”
Currently, IHG operates 37 hotels across five brands in Saudi Arabia, with 29 hotels set to open within the next three to five years.
In a separate development, IHG announced the completion of an extensive renovation programme of InterContinental Sydney.
The renovated hotel features 509 guestrooms and suites reimagined with a modern new design, features and amenities including advanced gym and indoor heated pool.