InterContinental Hotels Group is to open a new branch of its Indigo hotel chain in Larnaca, a seaside city in southern Cyprus.

Lanarca is Cyprus's third largest city.

Lanarca, which hosts one of Cyrpus's two international airports, hopes the arrival of IHG will boost tourism numbers to the city. "Hotel Indigo Cyprus-Larnaca is the first unit this hotel colossus will operate in Cyprus," the Larnaca Tourism Board said in a statement. "Larnaca has entered for good the tourism game by attracting the interest of both investors and travel agents."

The new hotel will be combining the development of an old residence with a new building.

Indigo is one of the biggest boutique hotel chains globally, and is the third chain to invest in Larnaca after the arrival of Radisson Blue and Best Western. Over the last three years, nine new hotel units have been built within the Larnaca district, adding 614 beds to the city's capacity.

In 2020, at least seven new hotels are expected to open within the limits of the Larnaca Municipality and the nearby suburb or Oroklini.