Al-Tayyar acquires Kenzi Makkah for SAR 1.5 bln

Al-Tayyar Travel Group Holding Co. said it has purchased Kenzi Makkah for SAR 1.5 billion ($400 million).

The five-star hotel is strategically located 70 meters away from Makkah’s Grand Mosque in Saudi Arabia, where millions of Muslim pilgrims from around the world converge every year for their Hajj and Umrah pilgrimages.

Al-Tayyar Group said the deal comes within its strategy to develop its Hajj and Umrah packages.

The company said it already secured a Sharia-compliant, SAR 1.230 billion loan from the Arab National Bank to be paid back in biannual installments over 20 years until August 31, 2025.

The remaining amount of the deal was funded directly by the company.

Al-Tayyar expects the deal’s financial impact to materialize during the first quarter of 2016. It plans to revamp the hotel and appoint a new international operator. Renovations will likely cost nearly SAR 100 million.

The property has been vacated and the balance was paid in lump sum to the notary public in Makkah on Thursday.

The hotel has 759 rooms and suites of various sizes on 24 floors, as well as three big restaurants.