OYO Rooms controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Zostel challenges proposed IPO over capital structure
Zostel asked India's securities regulator to stay OYO's IPO process, arguing that the unresolved Zo Rooms matter meant OYO's capital structure was not final.
2020
OYO hotel owners report unpaid amounts
Issue disclosure
In January 2020, media reports indicated that OYO hotels across China had experienced varying degrees of unpaid amounts owed to hotel owners since October of the previous year. Hotel owners stated that they were owed money by the company, and some of them went to OYO's Shanghai headquarters seeking explanations. The reports described the situation as involving owners in different locations, without specifying individual cases, amounts, or resolutions.
The article reports that OYO hotels across China had varying degrees of unpaid amounts owed to hotel owners from October onward. Hotel owners said they were owed money, and some owners were seeking explanations at OYO's Shanghai headquarters.
Source excerpt
该位酒店业主表示，OYO欠自己几万块钱，有的业主被欠是十几万，二十几万。目前全国各地的业主都在闹事，上海总部那边天天有业主上门讨说法，要债。
从去年10月份起，全国范围内的OYO都出现了不同程度的拖欠业主账款现象。
直到2019年12月底，索江锋被忽然告知，原先合同1月1日前结束，所有加盟店不再拥有保底费用，OYO给酒店业主的费用将按周结算，不同意签新合同的酒店将视为自动解约。
2020
OYO responds to China layoff reports
Company response
In March 2020, OYO responded to reports of layoffs in its China operations. The company stated that its strategic adjustments had begun at the end of the previous year and continued into early 2020, and that the planned changes in China had been delayed by the pandemic. OYO did not confirm the number of layoffs cited in the reports.
OYO said its strategic adjustments began at the end of the previous year and continued into early 2020, and that the China changes had been delayed by the pandemic. It did not confirm the reported number of layoffs.
Company response
Clarification — OYO酒店
OYO酒店并未向澎湃新闻确认关于此次裁员的具体人数。
Source excerpt
“基于此，我们从去年年底开始直至今年年初，在全球范围内，做了相应的战略调整。在中国原本计划一月份实施，疫情原因，导致延迟到了现在。”OYO酒店在给澎湃新闻的回复中表示。不过，OYO酒店并未向澎湃新闻确认关于此次裁员的具体人数。
2020
Oyo pledges free accommodation for frontline workers and stranded people
Issue disclosure
Oyo pledged to offer free accommodation to coronavirus frontline workers and foreigners stranded overseas. Its founder and CEO said selected hotel and homestay sites would be designated for frontline workers and some would be repurposed as isolation rooms. The article also notes criticism over Oyo's treatment of hotel owners, but reports no finding on those complaints.
Source excerpt
Oyo’s founder and CEO, Ritesh Agarwal, said selected sites from its international network of hotels and homestays would be designated to house health-care professionals, police and army staff working on the frontlines of the outbreak, including in the US and India.
Indian budget hotel chain Oyo has pledged to do “the right thing” by offering free accommodation to coronavirus frontline workers and foreigners who are stranded overseas, even as the USD 10 billion start-up continues to battle criticism over its treatment of hotel owners.
2019
Indian hoteliers protest Oyo fee increases
Public backlash
In 2019, Indian hotel operators complained that Oyo had increased fees, including charges they said were not initially disclosed. Several hotel groups organized protests in response. Oyo denied failing to disclose applicable contract changes. The dispute centered on the fees charged to hotel partners and the transparency of contract terms.
Company response
Denial — Oyo
"We have always disclosed any changes applicable to contracts with asset owners," Oyo said in a statement.
Source excerpt
Several hotel groups have organized protests.
But as the Softbank-backed startup pushes toward profitability, an increasing number of Indian hotel operators who have partnered with it are complaining about being blindsided by fee increases.
"We have always disclosed any changes applicable to contracts with asset owners," Oyo said in a statement.
2019
OYO denies allegations in hotelier's complaint
Company response
After a Bengaluru hotelier filed an FIR naming OYO CEO Ritesh Agarwal and six OYO employees over alleged criminal breach of trust and fraud, OYO denied the complaint's claims and said it considered the matter a regular commercial dispute. The allegations are not established as proven in the source.
Company response
Denial — OYO
Oyo denied all allegations
Source excerpt
A First Information Report (FIR) has been filed against OYO's CEO Ritesh Agarwal, along with six other employees of OYO under several sections of the Indian Penal Code, including alleged criminal breach of trust, and fraud by a Bangalore-based hotelier on Monday.
Having said that, they added, “We strongly refute the claims made in the complaint that has been wrongfully filed against our Founder and six other office bearers, based on false allegations and exaggeration on a regular commercial dispute.”
Oyo denied all allegations and said that “the appropriate criminal proceedings against the Bengaluru owner who is sensationalising a civil dispute to attract attention.”
2017
Zo Rooms acquisition dispute
OYO said the proposed Zo Rooms transaction had not been completed after the term sheet expired, while Zostel maintained that the agreement was binding and that it was entitled to a 7 percent stake. The dispute proceeded through arbitration, regulatory representations, and court proceedings.