Danantara Indonesia, Indonesia’s sovereign wealth fund, has completed its SR2 billion ($533 million) purchase of the Novotel Thakher Makkah hotel and 14 adjoining development plots in Makkah, the project’s master developer said on Monday.
Thakher Development said in a statement that it had handed property ownership certificates to the fund. The developer described the deal as one of the first major real estate acquisitions by an international sovereign investor in Makkah.
The transaction follows Saudi Arabia’s Law of Real Estate Ownership by Non-Saudis, which took effect in January 2026.
Novotel Thakher Makkah has three 19-story towers with 1,461 rooms and suites. Accor will continue to operate the hotel under its existing management agreement.
Danantara plans to develop the 14 plots, which total 44,088 square meters, into hotels with about 6,000 additional rooms and a shopping mall with more than 90 retail outlets. The planned investment is more than SR2 billion, the statement said.
Thakher Makkah lies 1.2 kilometers north of the Grand Mosque and spans 320,000 square meters, with a total investment value of more than SR26 billion, according to the developer.
“We are proud to have taken this transaction from signature to title in ten months,” said Faisal Shaker, Chief Executive Officer of Thakher Development.
Rosan Roeslani, Chief Executive Officer of Danantara Indonesia, said the fund would explore further opportunities in Madinah and in other sectors.
Indonesia has the largest Hajj quota of any country, with 203,320 regular places in 2026. The hotel can accommodate about 4,400 pilgrims per Hajj season, Thakher Development said.
