Danantara Buys $500 Million Mecca Hotel to Build Indonesia Hajj Village

JAKARTA, Investortrust.id — Danantara has acquired a hotel and adjacent land in Mecca on Wednesday, Dec 17, 2025 to realize President Prabowo Subianto’s Hajj Village program aimed at improving accommodation for Indonesian pilgrims, a move expected to significantly expand capacity near the Grand Mosque. The acquisition was valued at $500 million and formed part of Indonesia’s broader strategy to secure long term facilities for Hajj and Umrah pilgrims in Saudi Arabia.

The hotel was located in Takher City, an integrated area around 2.5 kilometers from the Grand Mosque in Mecca. Danantara also acquired around five hectares of land in front of the hotel to support further development.

Rosan Roeslani, CEO of BPI Danantara, said the acquired property consisted of 1,461 rooms across three towers. He said the land would be developed into 13 additional towers and a shopping mall dedicated to Indonesian Hajj and Umrah pilgrims.

The existing hotel could accommodate around 4,383 pilgrims, assuming four beds per room. Rosan said the planned expansion would raise total capacity to about 6,025 rooms, allowing accommodation for more than 23,000 pilgrims.

He said a bridge connecting the hotel complex to the Grand Mosque was currently under construction and targeted for completion in 2026. The bridge, known as the Al Hujun Tunnel, was expected to improve accessibility for pilgrims staying in the area.

Rosan said the development cost for the additional towers and mall was estimated at between $700 million and $800 million. He said the figures were still tentative and subject to further planning and approvals.

In addition to the hotel acquisition, Danantara was participating in a Saudi government tender to develop a separate Hajj Village site. Indonesia selected plot number six in the Western Hindawiyah area, also located around 2.5 kilometers from the Grand Mosque.

Rosan said Danantara was competing against around 90 bidders and had advanced to the final two. He said the tender process was based on project design, compliance, and planning rather than price, with an announcement expected by the end of December or January.

He said the Hajj Village initiative reflected strong public support and the government’s commitment to improving services for Indonesian pilgrims. He said the project would allow pilgrims to stay closer to the Grand Mosque in more suitable facilities, supporting a more focused and comfortable Hajj experience.