Oyo to enter luxury hospitality sector in Saudi with $1billion investment
Company is also working towards creating jobs for more than 5,000 Saudi citizens by 2020
India’s Oyo Hotels & Homes has signed an MoU with the Saudi Arabian General Investment Authority (SAGIA). As part of this agreement, Oyo will invest SAR 4 billion(US$1 billion) into building a luxury hospitality ecosystem across Saudi by adding luxury and upper-budget/mid-segment hotels to its chain in the coming months.
With this MoU, the Softbank-backed company marks its entry into offering luxury hospitality in the Kingdom.
Commenting on the development, H.E. Eng. Ibrahim Al-Omar, Governor of the Saudi Arabian General Investment Authority (SAGIA) said: “In Saudi Arabia, the market fundamentals are in place for a vibrant tourism industry, and we believe that the private sector will play a crucial role in unlocking this potential. At SAGIA, our role is to empower and enable domestic and international investors by identifying and developing new opportunities, fostering partnerships and shaping regulatory reforms.”
Currently, Oyo has more than 130 hotels with 6,500 exclusive keys across more than 14 cities in the region.
Speaking about their expansion plans, Ritesh Agarwal, Founder and CEO of OYO Hotels and Homes, said: “The luxury segment in the Kingdom of Saudi Arabia holds a lot of promise for us given the rapid growth of the hospitality industry over the last few years. Our operations in the region are supported by more than 350 Saudi nationals and we are keen to generate employment opportunities for young hospitality enthusiasts in the region. The Kingdom’s hospitality industry offers a huge, untapped opportunity and we’ll continue to invest in it and expanding OYO’s presence in the region,’’ added Ritesh.
Oyo Hotels & Homes in Saudi is currently run by a majority of young Saudi nationals, and the company plans to create jobs for more than 5,000 Saudi citizens by 2020.
OYO will also set up two OYO Skill Institutes, one in Riyadh and Jeddah to train Saudi graduates in hotel management.