Taiba Investments Finalizes $633.4m Agreement for Three Hotels in Madinah with Osool
Public Investment Fund-backed Taiba Investments Co. has finalized an agreement worth SR2.4 billion ($633.4 million) to develop three hotels in central Madinah.
Riyadh: Public Investment Fund-backed Taiba Investments Co. has finalized an agreement worth SR2.4 billion ($633.4 million) to develop three hotels in central Madinah.
The deal will see the firm create a special purpose company with Osool Integrated Real Estate Co., with Taiba contributing SR300 million to the project.
The hotels, owned by Osool Integrated Real Estate Co., will provide 1,500 new rooms and will be operated by local and international hotel brands.
This initiative is part of Saudi Arabia's efforts to expand tourism and religious hospitality infrastructure under Vision 2030.
Official data from the Ministry of Tourism showed Madinah recorded the Kingdom’s highest hotel occupancy rate during the first quarter of 2026 at around 82 percent, and it also ranked first among Saudi cities in hotel occupancy during 2025.
Feras Al-Banyan, CEO of Osool Integrated Real Estate Co., stated that this agreement represents a strategic step for Osool's drive to maximize the value of real estate assets through sustainable institutional partnerships.
The project is seen as an integrated model contributing to the Kingdom’s urban and tourism development objectives.
Sultan bin Badr Al-Otaibi, CEO of Taiba, highlighted that the project aligns with the company’s expansion strategy, driven by synergy-focused, value-creating institutional partnerships.
It extends a robust lineup of partnerships recently announced by Taiba, reinforcing its capacity to spearhead pioneering developments in the Holy Cities.
The project will be financed according to each party's ownership stake and in line with the project's progress.
Madinah welcomed more than 21 million visitors in 2025, with tourism spending rising 22 percent to SR52 billion.
The number of licensed hospitality facilities increased to 610, while hotel rooms exceeded 76,000.
Taiba Investments reported higher revenues in the first quarter of 2026, supported by improved occupancy rates and increased visitor numbers.
Despite this, the company's net profit declined compared to the same period a year earlier due to operating costs associated with newly added properties.
A non-binding memorandum of understanding was signed between Taiba Investments and Osool Integrated Real Estate Co. in November 2025, aiming to redevelop three hotels on the northern side of Madinah's central area.
The deal will see the firm create a special purpose company with Osool Integrated Real Estate Co., with Taiba contributing SR300 million to the project.
The hotels, owned by Osool Integrated Real Estate Co., will provide 1,500 new rooms and will be operated by local and international hotel brands.
This initiative is part of Saudi Arabia's efforts to expand tourism and religious hospitality infrastructure under Vision 2030.
Official data from the Ministry of Tourism showed Madinah recorded the Kingdom’s highest hotel occupancy rate during the first quarter of 2026 at around 82 percent, and it also ranked first among Saudi cities in hotel occupancy during 2025.
Feras Al-Banyan, CEO of Osool Integrated Real Estate Co., stated that this agreement represents a strategic step for Osool's drive to maximize the value of real estate assets through sustainable institutional partnerships.
The project is seen as an integrated model contributing to the Kingdom’s urban and tourism development objectives.
Sultan bin Badr Al-Otaibi, CEO of Taiba, highlighted that the project aligns with the company’s expansion strategy, driven by synergy-focused, value-creating institutional partnerships.
It extends a robust lineup of partnerships recently announced by Taiba, reinforcing its capacity to spearhead pioneering developments in the Holy Cities.
The project will be financed according to each party's ownership stake and in line with the project's progress.
Madinah welcomed more than 21 million visitors in 2025, with tourism spending rising 22 percent to SR52 billion.
The number of licensed hospitality facilities increased to 610, while hotel rooms exceeded 76,000.
Taiba Investments reported higher revenues in the first quarter of 2026, supported by improved occupancy rates and increased visitor numbers.
Despite this, the company's net profit declined compared to the same period a year earlier due to operating costs associated with newly added properties.
A non-binding memorandum of understanding was signed between Taiba Investments and Osool Integrated Real Estate Co. in November 2025, aiming to redevelop three hotels on the northern side of Madinah's central area.
