Accor is prioritizing expansion in Saudi Arabia’s holy cities as part of a strategic response to softening demand across the broader Gulf tourism market. The French hospitality company is positioning religious tourism as a growth driver, capitalizing on the predictable pilgrim flows that support the kingdom’s long-term tourism objectives.
The company currently operates more than 15,000 rooms across 15 properties in Makkah and Madinah, with an additional 8,000 rooms under development. This portfolio expansion aligns with Saudi Vision 2030’s target of accommodating 30 million international visitors annually for Hajj and Umrah pilgrimage purposes. Accor has deployed 10 different brands across these locations to serve various market segments and price points.
Notable upcoming openings include the Sofitel Jabal Omar Makkah, scheduled to launch later this year as the Sofitel brand’s largest global property with 1,100 rooms. A Fairmont property under construction in Madinah will include branded residential units alongside hotel accommodations. Additionally, Accor recently announced plans for the ibis Makkah Al Maabdah, a new 518-key property targeted for opening in 2031.
The development strategy reflects confidence in the religious tourism segment’s resilience. Company leadership has signaled commitment to continued branded hotel expansion across multiple market segments in the holy cities, suggesting management views the pilgrimage sector as offering sustainable growth opportunities despite broader regional tourism challenges.
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