Indonesian builder eyes $1.1bn Makkah hotel plan

Gov't-controlled construction firm Wijaya Karya said to plan seven-tower hotel complex
Makkahs Grand Mosque. (Photo for illustrative purposes only)
By Staff writer
Wed 31 Jul 2013 02:13 PM

Wijaya Karya (Wika), the Indonesian government controlled construction company, has drawn up plans for a seven-tower hotel complex in Makkah, Saudi Arabia worth an estimated $1.1bn, it has been reported.

The proposed site will reportedly be situated near the city’s Grand Mosque, with each tower costing SR588m ($157m) and accommodating up to 1,000 rooms, according to the Jakarta Globe.

The Indonesian daily quoted Wika corporate secretary Natal Argawan as saying: “We are currently studying the extent of the project in Saudi Arabia and our operational team already visited the proposed construction site.”

Wika operational director Destiawan Soewardjono is also reported to have said that work to find a Saudi partner for the construction of the hotel is already underway, with potential companies set to travel to Indonesia soon to review the local company’s construction methods and standards.

The holy city of Makkah is currently seeing huge construction of hotels after international operators look to cash in on the multi-billion dollar religious tourism industry.

Last month, Starwood Hotels & Resorts Worldwide said it signed an agreement with Jabal Omar Development Company to open three new hotels in Makkah.

As part of the Jabal Omar Development project, Starwood will add 1,496 rooms to the city under the company's Sheraton, Westin and Four Points by Sheraton brands when the hotels open in 2015.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.