Officials of the hospitality and hotel sector in Makkah have revealed that the city has seen the highest growth with regards to the number of five-star hotels in the last two years, as well as the largest recorded increase in hotel rooms.
The holy city of Makkah is considered one of the largest growing cities worldwide with an impressive return on investment in the hospitality sector. This has drawn world-renowned hotels to its lands and a never-ending sea of visitors. Currently, Makkah and Madinah are two of the most sought after cities, with approximately 2 billion Muslims hoping to visit.
Makkah hotels operate at an annual occupancy that is 70% over the available absorptive capacity. Hotel room prices are some of the highest in the world, especially during Al-Hajj season and Ramadan, where room prices are known to quadruple during the last ten days of the holy month.
In line with Vision 2030, there are numerous ongoing projects aimed at expanding Al-Haram Al-Sharif to accommodate 30 million pilgrims per year. The Saudi government is also planning to issue more Umrah visas in the upcoming years.
Makkah’s real estate market is considered the most expensive across the globe, with areas around the Holy Haram reaching SR1 million per meter squared. There is high demand for projects that will provide thousands of hotel rooms and accommodate the visiting pilgrims.