The landmark hotel in the holy city of Makkah will feature 256 rooms, state-of-the-art facilities including a separate male and female spa, four restaurants, six meeting rooms and a 1250 square metre ballroom for weddings and banquets, said a hotel spokesman.

"This is an important milestone for us to be present in what is considered the holiest city in Islam. This is our sixth Kingdom project which we consider one of our major growth markets," said area vice-president of the Rezidor Hotel Group Jean-Marc Busato.

The luxury Al Diyafa Radisson Hotel is within walking distance of the Al Diyafa shopping mall and three kilometres from the Haram, or the mosque of the prophet. The hotel will cater for religious tourism and the growing corporate and MICE market.

"We have acquired a good understanding of the Saudi Arabian market and besides developing our first class Radisson brand, we also see a demand for efficient, value for money accommodation for the frequent traveller in the mid market segment," Busato added.

Last year Rezidor announced the Al Madinah Paradise Radisson SAS Resort scheduled to open in 2008.

It currently manages four hotels in Riyadh, Jeddah and Yanbu. In addition, the company's mid market Park Inn brand will enter the Kingdom in the cities of Riyadh and Al Khobar.