InterContinental Hotels Group has agreed to develop and operate IHG hotels in Kuwait with Kuwaiti conglomerate Bukhamseen Group Holding. According to the Saudi Gazette, IHG will expand its brand portfolio and hotel presence within the Kuwait market in an exclusive collaboration with Bukhamseen.
Within the agreement, Bukhamseen has country-wide exclusivity in Kuwait for a 10-year term, covering six IHG brands. These include InterContinental Hotels and Resorts, Crowne Plaza, Holiday Inn, Holiday Inn Resort, Holiday Inn Express and Staybridge Suites.
Bukhamseen Group signed its first agreement with Holiday Inn chain founder Charles Kemmons Wilson 40 years ago. IHG currently partners with Bukhamseen to operate three hotels in Kuwait: Crowne Plaza Al Thuraya City, Holiday Inn Al Thuraya City and Holiday Inn Salmiya. The partners' most recent joint venture deal, the InterContinental Al Thuraya, is currently under construction next to the Holiday Inn Al Thuraya City and the Crowne Plaza Al Thuraya City. It is set to open in 2019.
Founded in 1957, Bukhamseen Group Holding maintains interests in tourism and hospitality, food and beverage, banking, education, engineering, finance, insurance, real estate and retail. The group operates in several Middle Eastern markets, including Egypt, UAE, Syria and Lebanon.
IHG saw a small increase in RevPAR in the Asia, Middle East and Africa region by only 0.1 percent. According to the group’s first quarter report, RevPAR declined by seven percent in the Middle East because of the ongoing impact of low oil prices, high supply growth and government austerity measures.