Oyo accused of ‘coercing’ hotel partners into new contracts amid covid-19 slump
Oyo Hotels is once again taking heat from Indian hotel partners, accusing the hotel chain of trying to unilaterally change contract terms without notice.
Citing the Covid-19 pandemic, Oyo is invoking a ‘force majeure’ clause and plans to suspend guaranteed payments.
Some hotel partners get minimum guarantee payments regardless of the number of guest bookings.
That has irked many hotels which say there is no force majeure clause in their contracts.
The Federation of Hotel and Restaurant Associations of India says it has received complaints from multiple hotels.
"We have reports that Oyo is now coercing hotels to agree and renegotiate to arbitrary and unreasonable terms by citing the pandemic and the ‘force majeure’ clause," said Gurbaxish Singh Kohli, vice president of the group.
"It is strange that Oyo has made tall claims in the media of offering free rooms for relief purposes which was without the express permission of the property owners, while on the other hand they are preying on these owners and partners."
In a letter to partners, Oyo has proposed new agreements to pocket 10% of net revenue from bookings, on top of other costs including ‘customer acquisition expenses.’
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Airbnb eyes a loyalty program but details remain under wraps