The five-star ZamZam Pullman Madinah will consist of two towers, with a total of 834 rooms and suites in the holy city, a statement said.
Construction of the ZamZam Pullman is at advanced stage and is scheduled to be opened by September, in time for the Hajj season, the Islamic pilgrimage to Makkah.
"We are proud to sign another Pullman hotel with Munshaat, following the successful ZamZam Pullman in Makkah, which was rebranded in 2012," said Christophe Landais, chief operating officer for Accor HotelServices Middle East.
"The Kingdom is and has been an important market for Accor for nearly 30 years, offering strong growth opportunities given the huge increase in religious tourism, especially in the cities of Makkah and Madinah, which welcomes millions of pilgrims each year," he added.
The ZamZam Pullman Madinah is located 150 meters away from the Holy Mosque.