More than 500 hotels may have broken ties with Oyo since April
The hotels have previously accused Oyo of contract breaches, arbitrary commission rate changes, stoppage of minimum guarantee amounts and threatening legal notices among other things
More than 500 hotels in 100 cities are said to have snapped their bonds with hospitality chain Oyo since April as the relationship has soured after various disputes.
“Many state and city associations have reported instances of large-scale termination of contracts with Oyo as also protests held by small local hotels against non-payment and other problems faced by them,” said Pradeep Shetty, honorary secretary, Federation of Hotel and Restaurant Associations of India (FHRAI). “It has also been reported to us that hotels are not being allowed to exit from Oyo due to holding back of the ‘no-objection’ certificate by the company,” Shetty said.
Despite severing ties, hoteliers said they haven’t been able to regain control of their online listings, which show the properties as being sold out on Oyo. On the other hand, customers have been complaining on social media that hotels hadn’t accepted bookings made on Oyo when they tried to check in.
Cities such as Bengaluru, Chennai, Hyderabad, Kolkata, Noida, Pune, Goa and Gurgaon accounted for most of the exits. Properties in smaller locations such as Karnal, Ludhiana, Guntur, Tirupur and Jamnagar had also broken away.