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World's Largest Hotel in Mecca Faces Delays and Uncertainty

World's Largest Hotel in Mecca Faces Delays and Uncertainty

BY Realty+
Published - Saturday, 03 May, 2025
World's Largest Hotel in Mecca Faces Delays and Uncertainty

Nearly a decade after Saudi Arabia unveiled its grand vision to build the world's largest hotel in Mecca, questions continue to swirl around whether the £2.3 billion Abraj Kudai will ever become a reality. The ambitious project, which was intended to feature 10,000 rooms, 45 storeys, 70 restaurants, and even four helipads, has struggled to progress, leaving many wondering if it will ever see completion.

The announcement, made in 2015, captured global attention, especially as it was set to surpass the current record-holder, Malaysia's First World Hotel. Yet, as the years have passed, the Abraj Kudai remains a distant dream, with little visible progress on the ground in Mecca, the holiest city in Islam. Despite public anticipation and significant investment, the project has encountered several setbacks that have hindered its development.

One of the main factors behind the delay is the changing landscape of Saudi Arabia's economy and politics. The Saudi Binladin Group (SBG), responsible for constructing the hotel, has faced several difficulties.

Although the Binladin Group has been one of the most successful construction firms in the Kingdom, its reputation has been tarnished in recent years. The company has been linked to a tragic crane collapse in 2015 that killed 111 people in Mecca. This disaster led to a halt in certain projects as the company faced increased scrutiny. Furthermore, the fluctuating oil price in recent years has added to the financial strain, impacting large-scale developments like the Abraj Kudai.

The situation worsened in 2017 when Bakr bin Laden, the founder of the Binladin Group, was detained as part of a sweeping anti-corruption purge led by Crown Prince Mohammed bin Salman. Although bin Laden was eventually released without charge, his detention, along with the restructuring of the company's ownership, has undoubtedly contributed to the delays.

Despite these setbacks, the Abraj Kudai project is not entirely off the table. Saudi Arabia's Crown Prince continues to push forward with massive investments to boost the country's tourism sector. The Kingdom has set an ambitious target to attract 40 million international visitors per year by 2030, with a significant portion of that number expected to visit Mecca for the Hajj pilgrimage. Religious tourism, in particular, is seen as a key driver of this growth, with some estimates suggesting that it could generate as much as $80 billion for the economy by 2030.

The Abraj Kudai hotel, designed to cater to the high-end needs of wealthy visitors, could still be part of Saudi Arabia's broader strategy to develop luxury tourism infrastructure. While the city already offers a variety of hotels, including properties from well-known brands such as Raffles, Mövenpick, and the upcoming Four Seasons, the demand for premium accommodations is still high, especially for ultra-high-net-worth individuals.

The original plans for the Abraj Kudai included a mix of four and five-star rooms, with luxurious features such as helipads designed to accommodate VIPs. Despite the uncertainty surrounding the project's timeline, the potential for this type of upscale accommodation remains strong, particularly with the growing number of religious visitors flocking to Mecca each year.

As Saudi Arabia continues to pursue its ambitious tourism agenda, luxury hotels in Mecca will undoubtedly remain a focal point. However, whether the Abraj Kudai will ever be completed remains uncertain, as the country balances its religious and leisure tourism aspirations with the realities of construction, financing, and political factors.

Ultimately, while the project's future is unclear, Saudi Arabia's drive to transform its tourism sector remains steadfast, and other high-end ventures will likely fill the gap in the meantime. The vision of the world's largest hotel may not be realised, but the appetite for luxury accommodations in Mecca shows no sign of waning.

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