Hotel management company Rotana has signed an agreement to launch its first branded residences project in Saudi Arabia. The company partnered with Saudi developer Zawaya Properties Company to build The Residences by Rotana at Thakher. The upscale development is located within the SAR 26 billion Thakher mixed-use site, situated 1.5 kilometres from the Grand Mosque in Makkah.

The deal introduces the group’s branded residence brand to the Kingdom. It increases Rotana’s total Saudi portfolio to 24 properties across five distinct brands, including operational sites and active pipelines. Knight Frank’s Destination Saudi 2026 report indicates that the local sector is growing quickly, backed by rising domestic wealth and international demand. The report notes that USD 3.4 billion in private global capital is prepared for allocation into the sector, with heavy investor focus on Makkah and Madinah.

Makram El Zyr, Corporate Vice President, Development, Rotana, said: “Branded residences and serviced apartments are amongst the most compelling growth segments in Saudi Arabia right now, and this signing reflects our conviction in both. The Residences by Rotana at Thakher is a landmark first for us in the Kingdom, and Makkah is exactly the kind of high-demand, high-significance environment where we see a great long-term opportunity. Alongside it, we see strong and growing potential for Arjaan Hotel Apartments by Rotana in Saudi Arabia, as demand for flexible, quality, long-stay hospitality continues to deepen across the market.”

The contract was finalised at the Zawaya Properties corporate offices in Riyadh on 7 July 2026. Makram El Zyr signed the document alongside Khaled Qurashi, Head of Advisory & Investments at Zawaya Properties Company. Zawaya Properties CEO Mohamad Al Thagafi attended the ceremony. The new project features 240 fully serviced hotel apartments. The units target long-stay tenants, corporate visitors, pilgrims and seasonal travelers searching for premium options beyond standard hotel rooms.

Mohamad Al Thagafi, Chief Executive Officer, Zawaya Properties Company, said: “At Zawaya Properties, we have always been driven by a belief that great real estate should be both beautiful in form and valuable in function, and this partnership with Rotana brings exactly that philosophy to Thakher. We chose Rotana for their regional expertise, their brand strength and their deep understanding of what guests and residents in this market expect. Together, we look forward to delivering a branded residences experience that sets a new standard for the segment in Makkah and reflects the full ambition of the Thakher development.”

Makkah remains central to the tourism plans of Saudi Arabia. Under the Vision 2030 strategy, the state aims to attract 30 million Umrah performers and 6 million Hajj pilgrims annually by 2030. The government plans to add 250000 hotel rooms across the Holy Cities to meet this capacity. The Thakher development spans 320000 square metres and can house more than 1.6 million visitors upon completion. It has recorded full occupancy during the Hajj season for two consecutive years.

Rotana currently operates 13 properties across cities including Riyadh, Jeddah, Madinah, Makkah, Dammam, Al Khobar and Jubail. The firm also has a confirmed pipeline of 10 upcoming properties containing 1314 keys across Riyadh, Jeddah, Hail, Abha and Al Baha. Saudi Arabia is the fastest growing market for Rotana outside the UAE. The company states it remains guided by its enduring promise of “Treasured Time.”