InterContinental Hotels Group (IHG) will announce a hotel development deal in Abu Dhabi this week as part of a wider push into the Middle East.

The group, the world’s biggest hotel company by number of rooms, has sealed a tie-up with Aldar Properties, one of the Gulf’s biggest developers, to build several hotels under its brands in Abu Dhabi. The first development will comprise a 430-room Crowne Plaza hotel and a 165-suite Staybridge Suites extended stay property. They will open next year on Aldar’s Yas Island development, close to a Formula One motor racing track and the world’s first Ferrari theme park.

The FTSE 100 company will also operate a luxury 300-room InterContinental hotel, which is due to open in 2011 at al-Raha Beach. The waterfront property will have extensive conference facilities.

IHG and Aldar are expected to join forces on a number of other projects as part of Abu Dhabi’s projected $136 billion (£70 billion) investment in business and tourism development. The emirate is targeting an increase in visitor numbers from 1.35 million to three million by 2015.

The group already has 73 hotels with about 18,000 rooms in the Middle East and Africa, with another 37 properties and 9,300 rooms in the pipeline. It is believed to be close to agreeing deals for two more hotels in Kuwait. Andy Cosslett, its chief executive, is in the region looking at expansion opportunities.

“The Middle East represents a huge growth opportunity for IHG,” he said. “We believe that this region will be one of our fastest-growing in 2008.”

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