Jabal Omar obtains license for 2nd tower of Jumeirah hotel in Makkah

Makkah-bound worshippers can expect improved accommodations as Jabal Omar Development Co. has obtained a license for the second tower of its five-star hotel.

In a stock market filing, the Saudi developer announced that it has received clearance from the Ministry of Tourism to operate the new extension of Jabal Omar Jumeirah hotels in its Makkah project.

The company stated that the new project comprises 244 luxurious, modern-style rooms and suites. Additionally, it features a restaurant, cafe, meeting halls, business center services as well as prayer zones, and a fitness center.

The Jabal Omar Jumeirah development consists of four towers, each with 19 floors, directly adjacent to the Holy Mosque.

The company highlighted its ongoing efforts to hand over the remaining two towers to the operator and fulfill requirements for permits from relevant authorities to operate the tower.

Anticipating positive financial outcomes from the hotel’s operations, the company expects a favorable impact on revenues in the current year.

Last year, the real estate developer reported a nearly tripled hospitality revenue of SR268 million ($71.46 million) for the first quarter of 2023, a record improvement compared to SR96 million for the same period the previous year.

The significant growth is attributed to the company’s successful strategy focused on enhancing the performance of the commercial centers’ portfolio. The surge in revenue is also linked to heightened demand from investors to rent commercial units.

Jabal Omar announced a substantial 241 percent increase in operating profits during the first quarter of 2023, reaching SR102 million. This marks a significant shift from the operating losses of SR72 million recorded for the corresponding period in 2022. The company credits this surge to its cost-control and spending strategies.

Saudi Arabia’s National Tourism Strategy aims to attract 150 million visitors by 2030, increasing the sector’s contribution to the Kingdom’s GDP to over 10 percent. The country also seeks to annually attract more than 30 million pilgrims.