Near-Haram hotels cost 3-5x more but offer walking access to shalat; Aziziyah is cheaper with shuttle service — during Haji days you are in Mina regardless.
This is one of the most significant decisions affecting your Haji experience and budget. Hotels within walking distance (500m) of Masjidil Haram cost 3-5 times more than equivalent accommodations in Aziziyah, a residential district 5-8 km south of the Haram. The price difference can mean thousands of dollars over a 2-3 week stay.
Staying near the Haram allows you to walk to the masjid for every shalat, perform spontaneous tawaf, and rest at your hotel between shalat — invaluable for elderly jamaah haji or those with health conditions. You save hours daily that would otherwise be spent on transportation. Staying in Aziziyah means relying on shuttle buses that take 15-45 minutes depending on traffic (which can be extreme during Haji season). However, Aziziyah hotels are often newer, have larger rooms, and offer significantly more value per dollar. Many jamaah haji find the shuttle commute manageable and appreciate the quieter, less congested environment. Important note: during the actual Haji days (8th-13th Dzulhijjah), all jamaah haji are in Mina/Arafah regardless of hotel location, so the distinction only matters for the pre-Haji and post-Haji days in Mekkah.