Makkah Construction signs SAR 372M contract to renovate hotel rooms, towers

Makkah Construction and Development Co. signed a SAR 372 million contract on July 6 with Roots Innovative Industrial Co. to renovate hotel rooms and towers in Mecca. The company said the spending will be recorded as capital expenditure over the execution period. That means the cost will not flow through the income statement immediately; it will appear on the balance sheet and be depreciated as the renovations are completed. Makkah Construction owns several hotel properties near the Grand Mosque, and the renovation work likely targets improving room quality or expanding usable space. The contract size is material for a company with a market capitalization of roughly SAR 9 billion. Investors will watch for the execution timeline, which the company did not specify, and for any guidance on how the upgraded rooms will affect future revenue. The stock has been flat over the past six months, and this capital commitment signals management is betting on higher occupancy or room rates once the work finishes.