Accor has signed an agreement with Saleh Abdulaziz Al Rajhi & Partners to develop ibis Makkah Al Maabdah, a 518-room economy hotel in the eastern part of Makkah.

TradeArabia reported the property, slated to open in 2031, will be located 3km from the Holy Mosque.

Saleh Abdulaziz Al Rajhi Partners CEO Mohammed Al Mahzari was quoted by the publication as saying: “Investing in Makkah’s future reflects our commitment to supporting Saudi Vision 2030 and private sector participation in the Kingdom’s tourism growth.

“This project sits within one of Makkah’s next growth corridors, and teaming with Accor, a partner with whom we already share a successful, long-term relationship, ensures the development delivers international standards while supporting the city’s continued transformation.”

Plans for the hotel include two restaurants, a lobby lounge, and 50m² of banqueting facilities.

Guest rooms will start from 22m², with the aim to meet rising demand for budget-friendly accommodation.

The project will further consolidate Accor’s footprint in Makkah, where the group currently operates 15,000 rooms and has more than 8,000 additional rooms under development across 11 hotels.

The upcoming ibis hotel is intended to serve both pilgrims and local residents.

The signing extends the existing collaboration between Accor and Saleh Abdulaziz Al Rajhi & Partners, which already covers the Fairmont Ramla Riyadh Serviced Residences and the Novotel Riyadh Al Wurud Hotel, both under development.

Accor Middle East, Africa and Türkiye premium, midscale and economy division regional president Raki Phillips said: “As the largest international hotel operator in the Holy Cities, we are seeing Makkah enter a new phase of growth, with demand becoming increasingly year-round and more diverse than ever before.

“By expanding access to internationally recognised economy hospitality, we are supporting the objectives of Saudi Vision 2030 and the evolving needs of today’s travellers.”