Indonesia’s sovereign investment fund Danantara has completed a SAR2 billion (US$533 million) property acquisition in Makkah, securing an operating hotel and 14 adjoining development plots intended to support the expansion of accommodation for Hajj and Umrah pilgrims.

As reported by Arabian Business, the transaction includes the 1,461-room Novotel Thakher Makkah and approximately 4.4 hectares of land within the Thakher Makkah development, located around 1.2km north of the Grand Mosque.

Thakher Development, the master developer, confirmed the handover of property ownership certificates on October 19, 2026. The hotel was acquired and handed over on August 11, while the adjoining land purchase was finalised on October 18.

The transactions follow a strategic agreement between Danantara and Thakher Development announced in December 2025.

The existing Novotel Thakher Makkah comprises three 19-storey towers containing 1,461 rooms and suites. Accor will continue managing the property under its existing agreement.

Thakher Development estimates that the hotel can accommodate approximately 4,400 pilgrims during each Hajj season.

Plans for 6,000 additional rooms

Danantara intends to build hotels providing approximately 6,000 additional rooms on the 14 plots, which cover 44,088 sq m, alongside a shopping mall comprising more than 90 retail outlets.

According to Thakher Development, the expansion represents planned investment exceeding SAR2 billion (US$533 million), separate from the completed acquisition.

Development will proceed in phases with Al-Khomasiah, Danantara’s local development partner, subject to feasibility studies, regulatory approvals and licensing requirements.

The acquisition forms part of Danantara’s strategy to establish a long-term hospitality investment presence in Makkah, moving beyond seasonal accommodation arrangements traditionally used for Indonesian pilgrims.

Indonesia has the world’s largest Hajj quota, with 203,320 regular places allocated in 2026. Approximately 1.5 million Indonesians also perform Umrah annually, according to Thakher Development.

Rosan Roeslani, CEO of Danantara Indonesia, said, “This milestone represents a concrete step in building a long-term hospitality investment platform in Saudi Arabia. Our focus is to manage these assets with rigorous investment discipline while developing an integrated ecosystem that enhances the quality of accommodation and services available to pilgrims from Indonesia and around the world.”

Danantara is also exploring investment opportunities in Madinah and other sectors as part of economic cooperation between Indonesia and Saudi Arabia.

Foreign investment in Makkah

The transaction follows the introduction of Saudi Arabia’s Law of Real Estate Ownership by Non-Saudis, which took effect in January 2026.

Thakher Development described the acquisition as a milestone for international property investment in Makkah.

Faisal Shaker, CEO of Thakher Development, said, “This is a historic moment for Thakher Makkah. Welcoming the first foreign state to own property in our destination reflects international confidence in Thakher Makkah, and in the Kingdom’s opening of Makkah to long-term partners who share its commitment to serving the guests of Allah.”

The wider Thakher Makkah development covers approximately 320,000 sq m, with a total investment value exceeding SAR26 billion (US$6.93 billion), according to the developer.

Its existing hospitality portfolio comprises approximately 2,700 hotel rooms and serviced apartments.