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Eye of Riyadh
Business & Money | Sunday 29 September, 2019 1:17 pm |
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OYO’s SAR 4 billion MoU with SAGIA to boost luxury hospitality sector

OYO Hotels & Homes, the world’s third largest and fastest-growing hotel chain, on the occasion of World Tourism Dayhas signed an MoU with the Saudi Arabian General Investment Authority (SAGIA). As a part of this MoU, OYO will invest SAR 4 billion into building luxury hospitality ecosystem across cities in KSA by adding luxury and upper-budget/mid-segment hotels to its chain in the coming months. 

 

OYO opened its doors as the largest hotel chain in Saudi Arabia and in a short period of time has expanded its footprint to 14 cities with 6,500 exclusive keys in 130+ hotels as a part of its chain. In February 2019, with the support of his Royal Highness Prince Mohammed bin Salman, OYO became one of the first Public Investment Fund (PIF) of Saudi Arabia and SoftBank Vision Fund backed company to launch operations in Saudi Arabia.

 

Reiterating its commitment to the Kingdom, OYO will invest up to 4 Billion Saudi Riyals in the region’s hospitality sector for providing trusted accommodation to travellers from GCC countries, India and other International tourists, including business and pilgrimage travellers. With the blessings of His Royal Highness King Salman bin Abdulaziz Al Saud, the company also marks its move into offering luxury hospitality in the Kingdom. As a part of the MoU, the hospitality company will add luxury hotels to its portfolio. Currently, over 130 hotels with 6,500 exclusive keys are a part of OYO’ chain which is spread across 14+ cities in the Kingdom.

 

Commenting on the development, His Excellency 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.”

 

 

 

Ritesh Agarwal, Founder and CEO of OYO Hotels and Homes, said, “The luxury segment in the Kingdomof Saudi Arabia holdsa lot of promise for us given the rapid growth of the hospitality industry over the last few years. We are honoured to bring OYO’s expertise, our deep understanding of consumers coupled with our operational and technological capabilities to the luxury hospitality segment in KSA. Today, we are hosting guests in over 130+ hotels with 6,500+ rooms as a part of OYO’s chain and we want to thank his majesty the custodian of the two holy mosques King Salman bin Abdulaziz Al Saud, his royal highness Prince Mohammed Bin Salman, and Saudi Arabian General Investment Authority (SAGIA) for their continued support,”.

 

“This MoU and investment of SAR 4 billion reiterates our commitment of delivering a standardized quality experience to travellers coming to the Kingdom of Saudi Arabia and driving higher yields for small and independent asset owners. Our operations in the region are supported by over 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.

 

Manu Midha, Region Head, OYO Hotels & Homes, Kingdom of Saudi Arabia,said, "We are honoured and thankful to SAGIA for providing us with this opportunity to support the Saudi Government’s 2030 Vision. We are making a significant investment to meet this and transform the region’s hospitality landscape and building luxury hospitality market in various cities in Saudi Arabia while setting best in class benchmark with reference to hospitality service and technology. We look forward to showcasing our signatureOYO hospitality and offering guests the unforgettable luxury experiences with our premium hotels.”

 

OYO Hotels & Homes in Saudi Arabia is committed to the kingdom and is bringing great living spaces through over 130 hotels under franchise and lease agreements across 14 cities. It is currently run by a majority of young Saudi nationals, and the company plans to create jobs for over 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. 

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