Business · Companies · 1 hr ago
Indonesia’s Danantara acquires hotel and development land in Mecca
Indonesia’s sovereign wealth fund Danantara acquired 14 plots and the Novotel Dhakhir Makkah hotel towers in Mecca, Saudi Arabia.
The properties are in Dhakhir Makkah, a development about 1.2 kilometres north of the Grand Mosque.
Danantara plans hotels with about 6,000 rooms and a mall with more than 90 shops on the plots.
The planned development investment exceeds 2 billion riyals, excluding the cost of the land.
The ownership transfer comes as updated rules on non-Saudis owning property in Mecca take effect, according to the developer.
Danantara says it will manage the assets and develop hospitality services for pilgrims and other visitors, while working with a Saudi development partner.
Indonesia’s Danantara has completed the acquisition of a hotel and development land in the Thakher Makkah district of Mecca.
The deal includes the operating Novotel Thakher Makkah, with 1,461 rooms and suites, and 14 plots of land covering about 4.4 hectares.
Danantara plans to develop the land for hotels and commercial facilities, including about 6,000 hotel rooms and a shopping centre with more than 90 shops.
The development is intended to expand accommodation and services for Hajj and Umrah pilgrims and other visitors.
The hotel was handed over on 11 August 2026, and the land acquisition was completed on 18 October 2026.
- Who
- Indonesia’s sovereign wealth fund Danantara, through its investment arm, acquired the assets from Thakher Development.
- What
- It acquired the Novotel Thakher Makkah and 14 plots of development land covering about 4.4 hectares.
- When
- The hotel was handed over on 11 August 2026, and the land acquisition was completed on 18 October 2026.
- Where
- Thakher Makkah, about 1.2 kilometres north of the Grand Mosque in Mecca, Saudi Arabia.
- Why
- The investment is intended to support a long-term hospitality platform and expand accommodation and services for Hajj and Umrah pilgrims.
This story does not have two clearly opposing sides.
Danantara Indonesia and Thakher Development Company announced a strategic agreement.
Danantara acquired and took handover of the Novotel Thakher Makkah.
Danantara completed the acquisition of the 4.4-hectare land plots.
Okaz and Detik reported the completed acquisition.
- Hotel
- Novotel Thakher Makkah; 1,461 rooms and suites
- Land
- 14 plots; about 44,088 square metres
- Location
- Thakher Makkah, about 1.2 kilometres north of the Grand Mosque
- Planned hotel capacity
- About 6,000 hotel rooms
- Planned retail
- More than 90 shops
- Future development investment
- More than 2 billion Saudi riyals, excluding the land acquisition cost
2 sources
What people are saying
Our focus is on managing these assets with strict investment discipline, while developing an integrated ecosystem that improves the quality of accommodation and services for pilgrims from Indonesia and other countries.
Concluding this strategic partnership with Indonesia’s Danantara represents a strong indication of international investment confidence in the Kingdom’s real estate development model.
The presence of the first country outside Saudi Arabia to own property in our destination reflects international confidence in Thakher Makkah.
We will carry out the next stages in a measured way, guided by commercial feasibility, regulatory requirements and prudent governance, to create sustainable long-term value.