Makkah’s Hotel industry is poised for a significant transformation with a staggering $666.6 million investment in the highly awaited luxurious Masar destination. 

The collaboration involves Umm Al-Qura for Development and Construction Co., the owners of Masar Destination, and the General Authority of Awqaf, ensuring the expansion of more than 1,000 luxury hotel rooms in the Holy City of Makkah. 

The formal agreement was made during the Hajj and Umrah Services Conference and Exhibition 2024 in Jeddah, marking a futuristic revolution in Makkah’s hospitality sector and increasing the number of Makkah Hotels, Insha’Allah.

The Partnership

The partnership between Umm Al-Qura and GAA, confirmed during the Hajj and Umrah Services Conference and Exhibition 2024, promises a landmark hospitality project in Makkah. 

This collective initiative is anticipated to generate significant returns on endowment investments while enriching the guest experience at the Masar destination.

Economic Diversification

Aside from enhancing accommodation options, the partnership is also committed to propelling economic and social development in the region. 

Furthermore, it aligns with the broader objectives of Saudi Vision 2030, aiming to contribute to the kingdom's economic diversification, enhance the quality of life in Makkah, and support the hospitality sector.

A Dedication to Urban Growth

In September 2023, Umm Al-Qura announced an alliance with Scope Properties to construct Residential Towers in Makkah, a project worth $240 Million (SAR900 million). 

This project, developed in coordination with private-sector investors and state-owned funds, further solidifies the commitment to Makkah’s urban growth.

The Masar Destination

The Masar project, backed by this significant investment, is set to redefine Makkah’s hospitality sector, focusing on religious tourism infrastructure. The collaboration aims to introduce over 1,000 new hotel rooms and suites to the province, enhancing its accommodation offerings.

The Masar Destination is a noteworthy portrayal of Saudi Initiative Destination Making, crafted under international urban planning standards and suited for the future. 

This strategy aligns seamlessly with the overarching goals of Saudi Arabia's Vision 2030, strongly emphasizing promoting a dynamic, inclusive, and adaptable economy.

According to Mr. Yasser AbuAteek, the CEO of Umm Al Qura for Development and Construction, the prosperity of contemporary civil society transcends mere economic advancement. Instead, it should establish an integrated ecosystem that promotes well-being, safety, and security, and addresses the essential needs of humanity.

A First-of-its-kind Investment Platform

The Masar destination is more than just a hospitality project. It represents a unique investment platform in Makkah, attracting diversified investments from various sectors, thereby enhancing the social impact of the destination.

In the previous year, Umm Al Qura successfully drew the interest of institutional investors to participate in MASAR. The cumulative investment has surpassed 35 billion Saudi Riyals, constituting 21% of the overall land investment in the destination across diverse sectors.

A Vision of Development and Investment

Masar is more than a hospitality project in Makkah. It embodies an urban vision of development and investment that sets high standards in the industry. 

It has attracted institutional investment partnerships, aligning with the kingdom’s strategy to diversify the hospitality sector and support national economic development plans.

Hotel Units

The development is set to feature an impressive number of hotel units. With a capacity of 24,000 rooms, the hotels can accommodate numerous visitors, catering to the city’s growing tourism industry.

Retail and Commercial Units

In addition to residential and hotel units, the Masar destination will also host a variety of retail and commercial units. These units will provide residents and visitors with diverse shopping and dining options.

A Collaborative Effort

The project is being developed with several private and state-owned investment fund investors. These include the Public Investment Fund (PIF), Ministry of Finance, Public Pension Agency, General Organization for Social Insurance, and General Authority of Awqaf.

A New Chapter in Makkah's Hospitality Industry

As Makkah positions itself for a new era in hospitality, the collaborative efforts between Umm Al-Qura and GAA represent a significant milestone. The $666.6 Million (SAR2.5 billion) investment into the hospitality sector addresses the immediate need for enhanced accommodation. 

It lays the foundation for Makkah’s sustained economic and social development, aligning with Saudi Arabia’s Vision 2030 forward-looking goals.

With the anticipated transformation, Makkah's hospitality landscape is expected to improve significantly, attracting more visitors and boosting the region's economy. This massive investment marks a new chapter in Makkah's hospitality industry, signaling a brighter and more prosperous future.

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