Danantara completes $533m Makkah deal, plans 6,000 hotel rooms

Makkah, Saudi Arabia - Danantara Indonesia has completed a $533 million (SAR2 billion) property acquisition in Makkah, securing the operating Novotel Thakher Makkah and 14 adjoining plots intended for future hospitality and commercial development.

The transaction establishes a long-term property and hotel investment platform for Indonesia in the holy city, with the acquired land expected to support thousands of additional rooms for Hajj and Umrah pilgrims.

Danantara completed the acquisition and handover of the 1,461-room Novotel Thakher Makkah on August 11, 2026, followed by completion of the 4.4-hectare land acquisition on October 18. Thakher Development subsequently completed the transfer of the property ownership certificates.

The land comprises 14 plots totalling 44,088 sq m within the wider Thakher Makkah development. Current plans envisage hotels containing about 6,000 additional rooms, together with a shopping mall offering more than 90 retail outlets.

That next phase represents planned investment of more than SAR2 billion ($533 million), separate from the value of the acquisition that has now been completed. Development is expected to proceed in stages with local partner Al-Khomasiah and remains subject to feasibility work, approvals and licensing requirements.

Novotel Thakher Makkah consists of three 19-storey towers with 1,461 rooms and suites across approximately 33,903 sq m. Accor will continue to operate the property under the existing hotel management agreement. Accor’s own property information also confirms the hotel’s 1,461-room inventory and 19 floors.

The hotel can accommodate around 4,400 pilgrims during each Hajj season, giving Danantara an operating hospitality asset while preparations continue for the adjoining development sites.

Danantara CEO Rosan Roeslani said: “This milestone represents a concrete step in building a long-term hospitality investment platform in Saudi Arabia.”

He said the group intends to combine disciplined asset management with the development of a broader accommodation and services ecosystem for pilgrims, while also exploring further opportunities in Madinah and other areas of economic cooperation.

Thakher Development CEO Faisal Shaker described the completion of the transaction as a significant milestone for international investment in Makkah.

The deal follows Saudi Arabia’s introduction of the Law of Real Estate Ownership by Non-Saudis, which took effect in January 2026 and created a new framework for international ownership and investment in the Kingdom.

Thakher Makkah itself covers approximately 320,000 sq m and sits around 1.2km north of the Grand Mosque. The wider destination carries a total investment value of more than SAR26 billion ($6.93 billion) and currently contains about 2,700 hotel rooms and serviced apartments.

The completed acquisition follows the strategic agreement signed by Danantara Indonesia and Thakher Development in December 2025 and moves the initiative from an acquisition agreement into long-term ownership and phased development.