Makkah Hotel Acquisition By Danantara To Enhance Pilgrim Services

Published on December 15, 2025

In a significant move to enhance services for Indonesian pilgrims, Danantara Indonesia, through its subsidiary Danantara Investment Management (DIM), has officially acquired key hotel and real estate assets in Makkah’s Thakher City. This acquisition marks the company’s initial foray into the hospitality sector within the Kingdom of Saudi Arabia and is part of a broader, long-term strategy to support the ever-growing number of Indonesian pilgrims visiting Makkah for Umrah and Hajj.

Strategic Move to Support Indonesian Pilgrims

Located just 2.5 kilometers from the revered Al-Haram Mosque, Thakher City is a major integrated development in Makkah. The acquisition of assets, including the Novotel Makkah Thakher City hotel with 1,461 rooms, is a crucial step in addressing the accommodation needs of Indonesian pilgrims. The development plan also includes 14 plots of land, covering approximately 4.4 hectares, which will eventually host new hotels, retail outlets, and additional hospitality services. The area will be developed according to an integrated master plan that aligns with the urban development vision for Makkah.

Enhancing Pilgrimage Experience for Indonesians

Each year, over two million Indonesian pilgrims travel to Makkah for Umrah, with the number of Indonesian Hajj pilgrims consistently exceeding 200,000. This influx of visitors has driven Danantara’s commitment to strengthening its presence in the Saudi Arabian hospitality market, ensuring better accommodations and services for Indonesian pilgrims. This acquisition is seen as a critical foundation for Danantara’s long-term involvement in the Kingdom’s hospitality sector, focusing on creating sustainable and high-quality accommodation options that cater to the specific needs of the Indonesian pilgrimage community.

Gradual Development to Meet Pilgrimage Demand

The acquisition includes existing operational assets and a long-term development plan for the Thakher City area. Danantara’s collaboration with Thakher Development Company will result in a carefully planned expansion, with the potential to offer up to 5,000 hotel rooms in the future. The first phase will see the continued operation of the Novotel Makkah Thakher City hotel, while the newly acquired land plots will undergo further studies and regulatory approval before development begins. These assets will complement the growing demand for comfortable and accessible accommodation in Makkah, ensuring that Indonesian pilgrims can stay close to the holy sites while enjoying top-tier hospitality services.

Long-Term Partnership for Sustainable Development

Danantara has partnered with local development experts, including Al Khomasiah Real Estate Development, to ensure the project aligns with Saudi Arabia’s urban development regulations and best practices. The project will be executed gradually, with a comprehensive feasibility study and adherence to regulatory processes at every stage. Danantara’s collaboration with the Royal Commission for Makkah City and Holy Sites (RCMC) further demonstrates its commitment to sustainable development and the seamless coordination between Indonesia and Saudi Arabia in delivering essential services for pilgrims.

Focus on Sustainable, Measurable Value

The initiative is part of a broader national development approach that aligns with Indonesia’s Asta Cita values. Danantara Indonesia views this acquisition not only as a business venture but also as a way to contribute to sustainable public value. The long-term strategy will enhance the quality of services provided to Indonesian pilgrims and ensure that every development phase adds measurable value to the community, both in Indonesia and Saudi Arabia.

In conclusion, Danantara’s strategic acquisition of hotel and real estate assets in Makkah’s Thakher City is poised to transform the hospitality landscape for Indonesian pilgrims. By expanding its hospitality offerings in Makkah, the company is helping to address the increasing demand for high-quality, accessible accommodations in the Kingdom, while also contributing to Saudi Arabia’s broader tourism and urban development goals.