***Most pilgrims aren't as rich...they stay in 4 star hotels (which are being DEMOLISHED constantly to make rooms for stores and 5-6 star hotels, just ask your travel agent next time u go for umrah!) and the hotels majority of the people can afford are located 10-15 mins walk from the Kabah!
Ask any of ur agent in month of hajj or after mid of ramdan kareem that if he can manage any room in those expensive room at any cost :) u'll find no room is available even they are expensive, brother just dun under estimate muslims that they are not that rich :)