Gulf Hotels makes Saudi Arabia debut with 3-property deal

Bahrain-based Gulf Hotels Group (GHG) is entering the Saudi Arabia market for the first time, signing an agreement with Burhan Hotels to manage and operate three properties in the Holy City of Makkah, comprising nearly 1,000 rooms.

The agreement covers Hotel Barakat Burhan Makkah, Hotel Barakat Burhan Al Huda and Hotel Barakat Burhan Al Diafa, all located in Makkah, just a short drive or shuttle ride from the Grand Mosque. Under the deal, two of the properties will undergo full renovation and rebranding, with completion and reopening scheduled by the end of 2026. The third property is expected to launch operations by Q3 2027, adding further inventory to support peak pilgrimage demand.

This comes as Saudi’s Ministry of Hajj and Umrah has begun issuing Hajj visas four months ahead of the pilgrimage season, as the kingdom prepares to welcome more than one million pilgrims to Makkah in 2026. 

Describing the partnership and market entry as a “strategic milestone” for GHG, Ahmed Janahi, Group CEO, said Makkah offers one of the world’s most “dynamic hospitality markets,” adding that the collaboration “enables Gulf Hotels to leverage its more than five decades of proven operational excellence" while supporting the kingdom’s position as a hub for religious travel.

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In line with its growth strategy, Gulf Hotels is also in talks with several globally recognised hotel brands to explore further branding opportunities across Saudi. 

The project aligns closely with Saudi Vision 2030, contributing to the development of internationally branded hospitality assets in Makkah while supporting the enhancement of services for pilgrims and Umrah travellers, as religious tourism in the kingdom is expected to rise to 30 million by 2030, up from 17.5 million in 2024.

To meet rising demand, Saudi plans to add 320,000 new hotel rooms, including an estimated 221,000 across Makkah and Madinah, with Makkah expected to open 35 hotels by the end of 2027 and 22,829 rooms in the Q4 2025 pipeline, according to Lodging Econometrics. 

Having opened Bahrain’s first five-star property, the Gulf Hotel, 59 years ago, GHG now operates 10 properties, including the Crowne Plaza and Novotel hotels in Bahrain, a property in Dubai, and a resort in Zanzibar. The recently signed Makkah agreement marks the company’s latest regional expansion.

For more information, visit gulfhotelsgroup.com