The hotel, costing SR1bn ($267m), will have 1,650 rooms capable of accommodating 18,000 pilgrims.

It is expected to be located about 200 metres from the Masjid al-Haram.

Tabung Haji is the Malaysian government-owned haj pilgrims fund board.

It is the latest project to be launched in Mecca, as developers capitalise on some of the world’s highest real estate prices and an increase in religious tourists.

Among the other projects is the 21-tower Rawabi Abraj al-Bait, planned by Jiwar Real Estate Management Marketing & Development Company, a subsidiary of Saudi Binladin Group.

A second Binladin project in the city is the $2.7bn Jabal Omar project, which it is building with Saudi Oger.