IHG Hotels & Resorts is opening a third property in Micronesia.

The hospitality company has signed a management agreement with Palau Coral Club, to open Hotel Indigo Palau at the end of 2024.

The 200-key property will front a coral reef on Malakal Island, one of the 200 islands that comprise the Republic of Palau.

When it opens, Hotel Indigo Palau will offer an all-day dining Neighbourhood Café and separate restaurant, a sunset bar by the pool, meeting rooms for 60 people, a resort center, swimming pool, spa and gymnasium. It will also offer immediate access to world-class diving and marine life.

The Republic of Palau is located southeast of the Philippines. The archipelago is widely-regarded as one of the world’s best destinations for diving, snorkeling, kayaking, boating and other water activities. Home to natural wonders like the Rock Islands and Jellyfish Lake, the country’s government is committed to preserving its reefs and marine life. In 2015, it created the Palau National Marine Sanctuary, a 500,000 square-kilometer area that is off-limits to commercial fishing and extractive activities, including mining and oil explorations. The remaining 20 percent of its ocean area is used by local fishermen only.

In its release announcing the management agreement, IHG notes that the Hotel Indigo brand is known for bringing the “Neighbourhood Story” of its destination to guests. Hotel Indigo Palau’s story will present a “Pledge to the Miraculous Sea,” showcasing Palau’s character, history, culture and natural beauty to guests.

“I’m so proud and excited that we have signed an agreement to open a Hotel Indigo property in Palau with the owner, Palau Coral Club, whose largest shareholder is Mr. Takao Yasuda, founder of Pan Pacific International Holdings Ltd. (PPIH),” said Abhijay Sandilya, managing director, Japan & Micronesia, IHG Hotels & Resorts. “This will be IHG’s first property in Palau, and its third in Micronesia. It also follows on from the recent signing of Hotel Indigo Tokyo Shibuya with PPIH, which will open in 2023. While Indigo Tokyo Shibuya and the Palau beach resort are very different, they are both attractive destinations in their own right, attracting tourists from all over the world with a unique story and experience.”