Danantara Indonesia has completed the acquisition of hospitality and real estate assets in Makkah, marking its first measured step into Saudi Arabia’s hotel sector, according to an official statement on Monday.
The transaction, signed between Danantara Investment Management and Saudi developer Thakher Development Company, covers assets located within Thakher City, an integrated development roughly 2.5 km from the Grand Mosque.
The deal includes the operational Novotel Makkah Thakher City hotel, with 1,461 rooms, as well as 14 land plots totaling about 4.4 hectares, earmarked for future development.
Danantara CEO Rosan P. Roeslani said the acquisition lays the groundwork for the institution’s long-term involvement in the Kingdom’s hospitality sector. He noted that the investment aligns with Indonesia’s efforts to improve accommodation and services for Indonesian Hajj and Umrah pilgrims, whose numbers exceed 2 million annually for Umrah and more than 200,000 for Hajj.
While ownership of the identified assets has been formalised, Rosan said further development will be carried out in phases, subject to detailed feasibility studies, regulatory approvals, and prudent governance standards. Preliminary plans indicate the potential growth of hospitality-oriented assets with a capacity of up to around 5,000 hotel rooms, although this remains contingent on further assessments and permits.
The acquired land is expected to be developed under an integrated master plan incorporating hotels, retail components, and supporting facilities, in line with Makkah’s broader urban development framework.
Danantara is working with local developer Al Khomasiah Real Estate Development as a strategic partner to ensure compliance with local regulations and long-term planning considerations in the Kingdom.
Danantara also said it is coordinating with authorities in both Saudi Arabia and Indonesia, including the Royal Commission for Makkah City and Holy Sites, as part of an ongoing bidding process tied to the first phase of a longer-term cooperation plan.
Rosan added that preliminary assessment indicates the acquired assets have the potential to support the provision of accommodation and related services for Indonesian Hajj and Umrah pilgrims, subject to the completion of technical studies and regulatory processes. The agreement provides a framework for subsequent phases, including development, construction, hotel operations, and other supporting services.
Danantara is also coordinating with the Saudi government, including the Royal Commission for Makkah City and Holy Sites (RCMC), as part of an ongoing bidding process that forms part of the first phase of a longer-term cooperation plan
As a state-mandated investment institution, Danantara Indonesia said it views the initiative as part of a broader long-term approach aligned with national development priorities and the Asta Cita agenda.
