Osool and Taiba Sign MoU to Renovate 1,500-Key Hotel Portfolio in Madinah

Riyadh, Kingdom of Saudi Arabia: Osool Integrated Real Estate has announced the signing of a Memorandum of Understanding (MoU) with Taiba to jointly launch “Project Light,” an initiative to renovate and elevate three hotels situated on the northern side of Madinah’s central zone. Together, the properties comprise 1,500 keys, representing one of the most significant hospitality redevelopment efforts in the holy city.

A Strategic Hospitality Redevelopment in a High-Value Location

The renovation programme aims to transform the three hotels into world-class destinations, blending contemporary hospitality standards with the architectural and cultural identity of Madinah. Inspired by the city’s Islamic heritage and its spiritual significance, Project Light seeks to deliver elevated guest experiences that cater to pilgrims, Umrah visitors and travellers from across the globe.

Under the MoU, Osool and Taiba will establish a specialised company responsible for developing and operating the hotels under a long-term strategic partnership. The new entity will oversee the creation of upgraded services, facilities and amenities designed to meet the expectations of an increasingly diversified global visitor base.

Supporting Madinah’s Tourism Vision and Enhancing Pilgrim Experiences

The redevelopment aligns with broader efforts to enhance the hospitality ecosystem in Madinah by improving service quality for pilgrims and visitors to the Prophet’s Mosque. The project is also expected to support the region’s tourism and economic growth by enriching visitor experiences and providing culturally resonant accommodation options for tourists, pilgrims, business travellers and Umrah performers.

Feras Albanyan, CEO of Osool Integrated Real Estate, stated: "The Project Light marks a significant milestone in Osool’s journey to solidify its role as an integrated investor and operator of real estate assets, and as a key driver of urban redevelopment initiatives in strategic locations across the Kingdom. Our partnership with Taiba represents a natural alignment between our capabilities in managing complex portfolios and Taiba's deep expertise in Madinah's hospitality market, enabling us to present a development model that supports the goals of Saudi Vision 2030".

Sultan bin Badr Al-Otaibi, CEO of Taiba, added: "The signing of this memorandum with Osool Real Estate aligns with Taiba's strategy to expand in the hospitality sector and support tourism growth in line with Saudi Vision 2030".

He further noted that Project Light will enhance Taiba’s hospitality portfolio through a long-term institutional investment, designed to create an integrated urban experience that elevates services for pilgrims and strengthens Madinah’s position as a global destination for religious tourism.

Project Framework and Implementation Plans

The MoU outlines a collaborative framework through which both parties will assess the investment and operational feasibility of the redevelopment. This includes preparing final agreements, defining the investment structure and coordinating with relevant authorities in Madinah to ensure alignment with urban and regulatory plans before moving into execution.

The project is expected to generate direct and indirect employment opportunities for Madinah residents and to stimulate local business activity, particularly among SMEs providing services and supplies for development and operations.

Commitment to ESG Principles and Long-Term Value Creation

Both Osool and Taiba continue to embed ESG and sustainability principles across their operational and investment processes. The redevelopment is expected to incorporate smart building solutions, resource efficiency enhancements and green technologies supporting the Kingdom’s environmental objectives and improving quality of life in the communities they serve.

The signing of the MoU reflects the shared commitment of Osool and Taiba to advancing high-impact investment opportunities in Madinah’s hospitality sector, while reinforcing the role of the Saudi real estate industry as a driver of economic diversification, growth and long-term institutional investment.