Aleph Hospitality signs agreement to manage Diyar Al Khalidiya Hotel, expanding its footprint in Makkah

SAUDI ARABIA – Aleph Hospitality, the largest independent hotel management company in the Middle East and Africa, has signed a hotel management agreement with Diyar Al Khalidiyah Hotel Services Company for the Diyar Al Khalidiya hotel in Makkah, Saudi Arabia.

This deal marks Aleph Hospitality’s entry into the Makkah market, complementing its existing operation of Four Points by Sheraton Jeddah, the company’s first hotel in the Kingdom.

The Diyar Al Khalidiya hotel features 338 rooms and is strategically located on Ibrahim Khalil Street, close to the Great Mosque of Makkah and the iconic Abraj Al-Bait Towers.

Aleph Hospitality will assume management of the property in August 2025 and is currently negotiating with international hotel brands to secure a suitable global brand to elevate the hotel’s market positioning.

Makkah stands as the spiritual heart of Islamic pilgrimage, experiencing unprecedented growth in its Hajj and Umrah tourism sectors.

Visitor numbers nearly doubled from 2022 to 2023, with tourist spending increasing fourfold during the same period, highlighting the city’s surging demand for quality hospitality services.

The Hajj tourism industry is projected to reach USD 343.55 billion by 2034, reflecting a strong compound annual growth rate (CAGR) of 7.20%.

This robust growth aligns with Saudi Arabia’s Vision 2030 goals, which aim to accommodate an annual pilgrimage target of 30 million visitors by that year.

To support this surge, Makkah’s hospitality infrastructure is undergoing massive expansion, including new hotel developments, smart systems implementation, and enhanced transport networks that improve visitor accessibility and overall experience.

Aleph Hospitality’s investment in Makkah’s hotel sector underscores the company’s confidence in the Kingdom’s evolving tourism landscape and its strategic importance as a regional hub for religious and cultural tourism.

With a growing portfolio and strong operational expertise, Aleph Hospitality is well-positioned to capitalize on market opportunities presented by increasing pilgrimage volumes and rising accommodation demand.

The upcoming management of Diyar Al Khalidiya hotel represents a significant milestone for Aleph Hospitality, demonstrating its commitment to supporting Saudi Arabia’s ambitious hospitality development plans.

As negotiations finalize the hotel’s branding, the company aims to offer world-class hospitality services that meet international standards and the unique needs of millions of pilgrims visiting Makkah annually.

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