Riyadh-based Al-Tayyar Travel Group Holding Company, a major tourism group in the region, has purchased a five-star hotel near the Grand Mosque in Makkah, Saudi Arabia for SR1.5 billion ($400 million), a report said.

The company received SR1.23 billion ($327.9 million) financing from the Arab National Bank and will pay back in 20 years through half-yearly instalments, ending in August 2025, said a report in Saudi Gazette.

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

The Group aims to develop the Haj and Umrah sector and the recent deal comes within its strategy as the property is a new product among Makkah's hotels, the report said.

The financial impact of the deal would happen in 2016 after a renovation of the hotel, it said.