Oyo Hotels & Homes is aiming to grab a large slice of Saudi Arabia’s burgeoning tourism market and plans to fund its aggressive expansion plans with a $1 billion investment.
OYO has signed a memorandum of understanding with the Saudi Arabian General Investment Authority (SAGIA) to develop a network of branded hotels in the mid-scale and luxury segments.
"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," said founder Ritesh Agarwal.
"The hospitality industry offers a huge, untapped opportunity and we will continue to invest in it and expand."
It is a timely announcement given that Saudi Arabia has just opened up to mainstream leisure tourism with tourist visas being offered initially to 49 countries.
Oyo also expects to market its hotel brands to the business and religious travel markets.
"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," said Eng. Ibrahim Al-Omar, governor of SAGIA.
Oyo currently operates about 130 hotels in 14 destinations across the Kingdom.
