Gulf Hotels Group Makkah has signed a Memorandum of Understanding to manage three hotels in Makkah, adding about 1,000 rooms and driving renovation and repositioning work.
Summary: Gulf Hotels Group Makkah has signed a Memorandum of Understanding with Burhan Hotels to manage three properties in Makkah, totaling about 1,000 rooms. The agreement includes major renovations, repositioning to international standards and potential affiliations with global brands, supporting Saudi Vision 2030.
Gulf Hotels Group Makkah has formally entered the city’s hospitality market by signing an MoU with Burhan Hotels to operate three hotels in Makkah, adding roughly 1,000 rooms under its management and marking a significant development for the Kingdom’s pilgrimage-focused accommodation stock.
Strategic market entry in the heart of religious tourism
The agreement places Gulf Hotels Group (GHG) in charge of day-to-day operations and hotel management for the three properties. The move is positioned as a strategic expansion into one of the world’s busiest religious destinations, where demand surges during Hajj, Umrah and Ramadan.
Renovation and repositioning to international standards
A central element of the MoU is a comprehensive refurbishment programme. GHG intends to engage specialist consultants to upgrade guestrooms, public spaces and services so the hotels meet internationally recognised hospitality benchmarks and become suitable for branded affiliations.
- Agreement: Memorandum of Understanding with Burhan Hotels
- Properties: Three hotels in Makkah
- Capacity: Approximately 1,000 rooms in total
- Scope: Management, renovation and repositioning toward global brand standards
Alignment with Saudi Vision 2030 goals
Officials and industry observers view the GHG deal as complementary to Saudi Vision 2030, which prioritises expanding tourism infrastructure and diversifying the economy beyond oil. Improved, professionally managed accommodation in Makkah supports those national objectives by raising service quality and capacity.
The project is expected to make it easier to absorb peak-season demand and enhance the experience of international visitors and pilgrims, while encouraging further investment from global hospitality brands seeking entry to the Saudi market.
Gulf Hotels Group’s regional experience
Founded in 1967 and listed on the Bahrain Stock Exchange, Gulf Hotels Group brings more than five decades of operational know-how. Its portfolio includes The Gulf Hotel Bahrain, Novotel Bahrain Al Dana Resort and Crowne Plaza Bahrain, among other properties across the region.
- Established: 1967
- Stock listing: Bahrain Stock Exchange
- Notable properties: The Gulf Hotel Bahrain; Novotel Bahrain Al Dana Resort; Crowne Plaza Bahrain
Economic and visitor impacts for Makkah
Industry analysts anticipate that professionally managed and upgraded hotels will reduce accommodation bottlenecks during pilgrim peaks, generate new employment, and increase visitor spending across retail, dining and transport services in the city.
Discussions are already under way with several international brands about possible affiliations for the renovated properties, a step that would broaden premium lodging options for pilgrims and international tourists.
Why this matters: The GHG entry signals growing investor confidence in Saudi Arabia’s hospitality market and promises tangible benefits for pilgrims and other visitors through better quality rooms, enhanced services and increased capacity.
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