Shafaqna English– The property sector in Makkah is currently undergoing a marked and rapid transformation, with capital flows increasingly directed toward hospitality-related investments.
This momentum is being driven by two interrelated factors: the sustained rise in the volume of pilgrims arriving for Hajj and Umrah, and ongoing efforts to expand the city’s physical and service infrastructure to accommodate them.
As a result, hotels are rapidly becoming a cornerstone of operating income for many real estate developers operating in the region.
This shift is occurring against a backdrop of a notable recovery in hospitality sector profitability, which is now becoming increasingly visible in the financial statements of real estate firms.
The improvement is largely attributable to rising occupancy levels and higher average daily room rates, with the most pronounced gains being recorded during the peak pilgrimage periods of Hajj and Umrah.
Source: Aawsat