Al-Tayyar buys Makkah hotel for $400 million

Al-Tayyar Travel Group Holding Company has reportedly added a five-star hotel in Makkah to its hospitality portfolio, with 759 rooms and suites spread across 24 floors. It is located 70 metres away from the Grand Mosque, and was purchased at a cost of SR1.5 billion (US$ 400 million).

The group already holds a significant number of properties across Middle East, including UAE, Egypt, Saudi Arabia, Kuwait, Oman and Jordon.

According to Saudi Gazette, the acquisition is aligned with the company’s strategy to develop its offerings for the Hajj and Umrah sector, given the strategic location of the hotel.

The company said it got financing reaching SR1.230 billion (US $320 million) from the Arab National Bank that will be paid back in 20 years through half-yearly instalments, ending in August 2025; however, the financial impact of the deal would happen in 2016 after a renovation of the hotel.