$100m renovation begins at Makkah Hotel & Towers

Renovation work has started on the five-star Makkah Hotel & Towers in Mecca.

The project will cost SAR372 million ($99 million) and will be carried out in phases by Roots Innovative Industrial Company, Makkah Construction and Development Company said in a statement to the Saudi stock exchange.

The renovation will increase the number of hotel keys from 609 to 619, with work scheduled for July 2026 to January 2027. The number of apartments will rise from 824 to 883. Their completion is slated for January 2028.

Shares in Makkah Construction and Development were trading at SAR85.55 on Tuesday afternoon. They are up 7.5 percent so far this year.

Saudi Binladin Group, which is majority-owned by the Saudi government, owns nearly 13 percent of Makkah Construction and Development.

Hotel occupancy in Saudi Arabia held steady in the first quarter of this year although room prices fell in response to a drop in foreign visitors.

Room occupancy stood at 61 percent in January to March, according to the General Authority for Statistics.

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This is just 2 percentage points lower than the same period in 2025, despite the outbreak of the Iran conflict, which devastated regional tourism.

Saudi Arabia has been less affected than its GCC neighbours. This is partly down to its large domestic market, which hoteliers said made up for the fall in international tourists.

Visitor numbers were also supported by religious tourism to the holy city of Mecca during Hajj. The number of pilgrims was slightly higher this year than in 2025.