Muawwan Daelami, Jakarta – Sovereign wealth fund Danantara Indonesia announced on Sunday that it has acquired hotel and real estate assets in Thakher City, an integrated development located about 2.5 kilometers from the Grand Mosque in Makkah.
The acquisition aligns with the Indonesian government's long-standing plan to develop dedicated accommodation and support facilities for Indonesian Hajj and Umrah pilgrims, who number in the millions annually.
The deal was formalized through a signing between Danantara Investment Management, the fund's investment arm, and Thakher Development Company on Sunday. Danantara secured the assets after winning a competitive bidding process for the real estate development concept, beating more than 90 other bidders.
The acquisition marks Danantara's entry into Makkah's hospitality sector and forms part of a phased, long-term strategy to enhance services for Indonesian Hajj and Umrah pilgrims. Indonesia, home to the world's largest Muslim population, sends more than 200,000 pilgrims for Hajj each year, while annual Umrah arrivals exceed two million.
Under the transaction, Danantara acquired the Novotel Makkah Thakher City, a fully operational hotel with 1,461 rooms, as well as 14 land plots totaling about 4.4 hectares earmarked for future development. Subject to further studies and regulatory approvals, the broader project could eventually support up to around 5,000 hotel rooms.
Danantara plans to develop the land under a master plan encompassing hospitality, retail, and supporting facilities in line with Makkah's urban development framework. "This signing is an important first step in securing strategic assets that can support Indonesia's efforts to improve services for pilgrims," Danantara Indonesia Chief Executive Rosan Roeslani said in a statement.
He added that subsequent development will be carried out in stages, guided by comprehensive feasibility studies, regulatory considerations, and prudent governance standards.
To ensure alignment with local regulations and market practices, Danantara is partnering with Al Khomasiah Real Estate Development, a local developer with experience in Makkah. The fund is also coordinating with the Saudi government through the Royal Commission for Makkah City and Holy Sites as part of the ongoing bidding and planning process for the first phase of the long-term cooperation.
Initial assessments suggest the acquired assets have strong potential to support accommodation and services for Indonesian pilgrims, subject to technical studies and regulatory clearance. "This agreement lays the foundation for a long-term development strategy and provides a structured framework for future stages, including development, construction, hotel operations, and related support services," Rosan said.
All development phases will be carried out in coordination with relevant authorities in Saudi Arabia and Indonesia, in accordance with applicable licensing and governance requirements.