India's OYO Hotels expands operations in Saudi Arabia

Saudi Arabia's Public Investment Fund (PIF) signed a Memorandum of Understanding (MoU) with Softbank-backed OYO Hotels & Homes to expand operations in the Kingdom.

The MoU was inked on the sidelines of the Saudi-Indian Forum, organized by the Saudi Arabian Government Investment Authority (SAGIA).

“The company obtained its foreign investment license from SAGIA a few months ago and plans to invest significantly in Saudi Arabia, and expand to over 17 cities across six provinces by 2020,” said Ibrahim Al-Omar, Governor of SAGIA.

With over 50 signed full-inventory - franchised exclusive hotels and over 3,000 rooms in seven cities in Saudi Arabia, OYO’s properties will be operated under the franchise model, with full inventory control similar to other markets like India and China, the Indian budget hotel operator said in a statement.

These hotels will provide affordable living options for travelers from GCC countries, India and other international tourists, including business and pilgrimage travelers.

OYO Hotels is planning to provide jobs for over 5,000 Saudi citizens by 2020.

It will also set up two OYO Skill Institutes, one in Riyadh and Jeddah to train Saudi graduates in hotel management, the statement added.