• Ministry of Municipal, Rural Affairs and Housing (MOMRA) has approved OYO as one of the private entities for the audits of housing properties managed by private organisations and individuals
  • The Audit will cover adherence to local regulations and safety standards, creating a secure environment for both guests and hosts
  • A recent Knight Frank report says that under Vision 2030, Saudi Arabia is expected to have 310,000 hotel rooms by 2030 with an investment size of $110 billion

Riyadh. The Ministry of Municipal, Rural Affairs and Housing (MOMRA) has awarded the global travel-tech firm, OYO Rooms the mandate for a comprehensive audit of hotels, apartments, and other residential units offering accommodation to employees working in private organisations or for individuals. OYO will certify housing units that adhere to MOMRA’s regulatory standards. The Ministry started auditing housing properties in January 2020 to ensure the highest standards of accommodation quality for the country's labor force.

Under this initiative, both private organizations and individuals employing more than 20 workers are mandated to provide suitable accommodations for their employees, particularly if they do not receive a housing allowance.

Audits are conducted annually, and housing licenses remain valid for a year.

These audits assess various aspects of worker accommodations, including safety, hygiene, and overall quality. In December 2020, the government granted permission for private entities to conduct housing audits on behalf of MOMRA to fast-track the process.

OYO has developed a dedicated mobile application aimed at streamlining and simplifying the audit process for housing units in Saudi Arabia in accordance with the standards set by MOMRA. It has a user-friendly interface equipped to support real-time data capture, photo documentation, secure data storage, and instant updates. Its primary aim is to ensure that housing facilities meet the highest standards of quality, safety, and compliance with regulations while maintaining complete transparency.

If an organization has some quality or compliance gaps, OYO also advises on corrective steps helping them achieve conformance with MOMRA standards within a timebound period. It ensures that all properties adhere to local regulations and safety standards, creating a secure environment for both employees living in the housing units and their respective organisations.

OYO has successfully completed comprehensive audits for residential units providing accommodations to employees from organizations such as McDonald's, Al Mraie, IKK Group, Al Bawani, Pepsi Al Jomaih, Saudi Logistics Services, and Al Majal.

Besides the process audits contract, OYO has approximately 50 hotels across Saudi Arabia and planning to add more hotels in major business and leisure destinations.

Vision 2030, an initiative launched by His Royal Highness Crown Prince Mohammad bin Salman, seeks to transform Saudi Arabia into a global investment powerhouse and a hub for trade and innovation. OYO's partnership underscores its commitment to contributing to the development of Saudi Arabia's tourism and hospitality sector as a key element of this transformative vision.

Speaking on the development, Mohannad Bazerbashi, Country Head, OYO Saudi Arabia said "We are excited to partner with the Ministry of Municipal, Rural Affairs, and Housing in Saudi Arabia on this pioneering initiative. OYO is committed to setting new standards for quality and safety in the hospitality sector. This collaboration aligns perfectly with our mission to provide delightful stays for guests and empower property owners. We look forward to working closely with the Ministry to create a more vibrant and attractive tourism landscape in the Kingdom."

Mr. Abdulaziz Younis, Staff Housing Officer, Riyadh International Food (McDonalds) said "The app's efficiency and transparency helped us to swiftly secure our license, ensuring compliance with MOMRA standards. It's a great help for anyone looking to streamline their operations in the Kingdom".

A Knight Frank report says that under Vision 2030, Saudi Arabia is expected to have 310,000 hotel rooms by 2030 with an investment size of $110 billion. Saudi Arabia's hotel segment is projected to generate $2.51 billion in revenue this year and is expected to reach $3.02 billion by 2027. This underscores the opportunities within the hotel industry, emphasizing the need for expedited governmental approvals to facilitate the swift commencement of these hospitality establishments.

This partnership reaffirms OYO's dedication to improving the hospitality ecosystem supporting the Kingdom of Saudi Arabia in its vision to become a premier travel destination. OYO remains committed to providing quality and affordable stays for travelers while driving economic growth through its collaborative initiatives.

About OYO

OYO is a global platform that aims to empower entrepreneurs and small businesses with hotels and homes by providing full-stack technology products and services that aim to increase revenue and ease operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world. OYO offers 40+ integrated products and solutions to patrons who operate over 1.70 lakh hotel and home storefronts in more than 35 countries including India, Europe and Southeast Asia, as of June 30, 2022. For more information, visit www.oyorooms.com.

Disclaimer: Oravel Stays Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares (the “Equity Shares”) and has filed the Draft Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”).

The DRHP is available on the website of SEBI at www.sebi.gov.in, websites of the Stock Exchanges, i.e., BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the Global Coordinators and Book Running Lead Managers, i.e., Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and Citigroup Global Markets India Private Limited at www.investmentbank.kotak.com, www.jpmipl.com and www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm; the websites of the Book Running Lead Managers, i.e., ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, JM Financial Limited and Deutsche Equities India Private Limited at www.icicisecurities.com, www.nomuraholdings.com/company/group/asia/india/index.html, www.jmfl.com and www.db.com/India, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in the future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision. The Equity Shares offered in the Fresh Issue (as defined in the DRHP) and the Offer for Sale (as defined in the DRHP) have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) within the United States only to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) in transactions exempt from, or not subject to, the registration requirements under the Securities Act, and (ii) outside the United States in offshore transactions in reliance on Regulation S under the Securities Act and pursuant to the applicable laws of the jurisdictions where those offers and sales are made. There will be no public offering of the Equity Shares in the United States.