Accor Expands Hotel Operations in Makkah and Madinah

Accor is intensifying its focus on Saudi Arabia’s holy cities, Makkah and Madinah, as religious tourism provides stability amid a general decline in Gulf tourism due to regional conflicts. The French hotel group currently operates over 15,000 keys across 15 hotels in these cities under 10 different brands, with plans to add 8,000 more keys. This expansion aligns with Vision 2030’s goal of attracting 30 million international Hajj and Umrah pilgrims annually. Key projects include the Sofitel Jabal Omar Makkah, which will be the brand’s largest property globally with 1,100 rooms, and a Fairmont in Madinah that will feature branded residences. Additionally, a new ibis hotel with 518 keys is set to open in Makkah in 2031. Accor's strategy is driven by the persistent demand for quality hotel supply in Makkah, where there are approximately 65,000 quality keys out of a total of 300,000, many of which are seasonal and of lower quality. Despite a performance dip in June due to the Hajj moving to May in 2026, Accor executives remain optimistic about continued development across multiple segments, supported by both domestic and international demand. The company is increasingly focusing on conversions and portfolio deals rather than new builds, and new real estate ownership rules may attract Muslim investors from countries like Indonesia, Malaysia, and Nigeria.