Makkah Construction signs SAR 372M contract to renovate hotel rooms, towers

Makkah Construction and Development Co. (MCDC) signed a 19-month contract on July 6 with Roots Innovative Industrial Co. to carry out renovation works for Makkah Hotel and Towers.

In a statement to Tadawul, the company said the total contract value is SAR 372 million, excluding VAT.

The work will be carried out in phases under the approved execution plan, with activities scheduled to accommodate peak seasons and ensure uninterrupted operations, including during Ramadan and Hajj season.

The company expects the project's financial impact to be recognized as capital expenditure during the execution period. It added that, upon completion, the renovation is expected to support the long-term performance and enhance the competitiveness of Makkah Hotel and Towers. However, the impact on operating results cannot be accurately determined at this stage, as it will depend on the progress of execution and market conditions.

Makkah Construction noted that Chairman Saleh Binladen is a related party.

Highlights
Item	Details
Project	Renovation of hotel rooms and towers as part of the Makkah Hotel and Towers refurbishment project
Company	Makkah Construction and Development Co.
Contractor	Roots Innovative Industrial Co.
Contract value	SAR 372 million
Project objective	Enhance guest experience, upgrade room quality, support long-term performance, and strengthen the asset's competitiveness
Additional project works	Upgrading public areas, reception areas, restaurants, selected supporting facilities, and improvement and construction works
Project execution period	Phased implementation through January 2028
Peak season considerations	Work scheduled to ensure full operations during Ramadan and the Hajj season
Hotel before Phase 1	614 keys
Hotel after completion of Phase 1*	609 keys
Hotel after completion of subsequent phases	619 keys
Expected increase in hotel keys	5 keys
Hotel renovation period	July 2026 to January 2027
Towers before renovation	824 keys
Towers after completion**	Up to 883 keys
Expected increase in tower keys**	Up to 59 keys
Tower renovation period	July 2026 to January 2028
Hotel renovation phases	Phase 2: July 2026 to October 2026; Phase 3: October 2026 to January 2027
Tower renovation phases	Tower 2: July–October 2026; Tower 5: October 2026–January 2027; Tower 3: June–September 2027; Tower 6: September 2027–January 2028

* The decline in the total number of hotel keys after Phase 1 is due to the reconfiguration of hotel units, with the layout changing from 107 rooms and three suites to 98 rooms and seven luxury suites.

** Estimate.

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