Makkah Construction records 96% rise in occupancy rates in Q1 2023: Official

Ziad Al-Bassam, board member, Makkah Construction and Development Co.

Makkah Construction and Development Co. recorded a 96% rise year-on-year (YoY) in the occupancy rates in the hotel, commercial center, and towers during the first quarter of 2023, board member Ziad Al-Bassam told Argaam.

He added that the average room rate reached more than SAR 631.50 per night, noting that rates generally increased compared to previous years.

The developer recently received the comprehensive deed for its first project in Makkah and managed to link its project to the First Ring Road over the last period, which allowed easy access to visitors.

Further, Al-Bassam added that a large part of the comprehensive renovations of the commercial center, hotel and six towers, which together include more than 1,400 rooms, were completed.

Commenting on Q1 2023 financials, he added that the Saudi government took several measures to facilitate visits and Umrah, which led to an influx of a very large number of visitors and guests to Makkah. This, accordingly, had a positive impact on increasing hotel occupancy and rental prices, and helped the company achieve strong results.

The first-quarter results included almost nine days of Ramadan, and the upcoming results will coincide with Ramadan, Shawwal, Dhu al-Qi`dah and the first days of Dhu al-Hijjah. These months witness the influx of visitors, as well as Umrah and Hajj performers, which reflects positively on occupancy rates and prices. 

According to data available with Argaam, Makkah Construction reported a profit surge to SAR 65 million in Q1 2023, compared to SAR 9 million in the year-earlier period.