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Second Saudi property adds 338 rooms in the Holy City as religious tourism industry accelerates
Dubai-based Aleph Hospitality has signed a management agreement for the 338-room Diyar Al Khalidiya hotel in Makkah, marking its first property in the Holy City and second in Saudi Arabia.
This follows the successful launch of Aleph’s first Saudi property, the Four Points by Sheraton Jeddah, which opened earlier in 2025.
Religious tourism in Saudi Arabia is experiencing strong growth, with more than 6.5 million international visitors performing Umrah in the first quarter of 2025 alone, reflecting an 11% increase from the previous year, according to the Ministry of Hajj and Umrah.
Positioned on Ibrahim Khalil Street, near the Great Mosque of Makkah and the Abraj Al-Bait Towers, the Diyar Al Khalidiya hotel will come under Aleph’s management in August 2025, with plans underway to secure an international brand affiliation.
Commenting on the signing, Tariq Dowidar, Aleph Hospitality’s VP for Saudi Arabia, said: “With Makkah set to welcome tens of millions of pilgrims annually, we are proud to bring our expertise to help the hotel streamline operations and deliver exceptional guest experiences at scale.”
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Pilgrim numbers are forecast to increase from 17.5 million in 2024 to 25 million or more in 2025, with the kingdom aiming to accommodate 30 million annual pilgrims by 2030 through hotel capacity, new metro lines, airport expansions and smart technologies.
To meet increasing demand, Makkah has more than 8,500 rooms under construction across 12 hotel developments and large-scale projects like Rua Al Haram and Masar Destination, with total inventory set to increase from 63,428 to 71,643 rooms by 2027, according to Knight Frank.
As the largest independent hotel management company in the Middle East and Africa, Aleph Hospitality currently manages 18 operational hotels with five more in development across regions including Rwanda, Zanzibar and Saudi Arabia.
The company aims to operate 50 hotels by the end of 2025.
For more information, visit alephhospitality.com