The hotel, to be located in close proximity to the government and central business district (CBD) in central Kuwait city, will target business tourism in the state.
The hotel is expected to open in the first quarter of 2010.
It will feature 200 rooms, including 20 suites. The hotel will also feature a banquet hall covering 600-square metres of space, a gym and a business centre.
Bukhamseen was established in 1960 and has operations in Egypt, the UAE, Syria and Lebanon.
Currently, the Intercontinental Hotels Group has 10,900 rooms across the Middle East and North Africa. It already operates two Holiday Inn hotels and a Crowne Plaza hotel in Kuwait.