Oyo Officials Held Hostage By Sikkim Hoteliers For Unpaid Dues; Oyo Terms It ‘Intimidation’, Threatens Action

Although Oyo Rooms has become World’s 3rd biggest hotel network, and has been valued at whopping $10 billion, it is facing some intense issues back home.

After Shimla, Bengaluru, Mumbai and Kochi, Oyo Rooms is now facing backlash in Sikkim, a small and an important tourism destination in East India.

The matter has become serious, since some officials of Oyo Rooms were held hostage by hoteliers in Sikkim, over unpaid dues.

What has exactly happened here?

Oyo Officials Held Hostage In Sikkim Over Unpaid Dues

As per North East publication EastMojo, atleast 4 Oyo officials from Sikkim were held hostage by a hotel management over unpaid dues.

This hotel is situated at Lal Bazar flyover in Gangtok under Sadar police station.

Four employees: Subrata C, Surojit, Satya and Siddharth were detained by the hotel management in the basement of the hotel.

One of the detailed employees said to a person (who reported this matter to EastMojo): “They have detained us in a room. We will be freed once the issues relating to payment of dues are resolved. No one is allowed to go out of the room,” 

In their defense, the hotel owners alleged that it has been months since Oyo released their payments, and now, this is an emergency, and the question of their survival.

They said, “Now, we are helpless. The overall dues have already crossed Rs 1 crore. They are not serious with us. The company is trying to mislead us. Today, too, these officials are saying that they don’t know anything as they are from the marketing team of the company,” 

Sikkim Hotel and Restaurant Association has alleged that Oyo management is refusing to entertain their request for releasing their payment, and the situation is going out of hand.

Oyo Responds: Terms This As Intimidation, Threatens Action

After this incident came to light, Oyo Rooms has responded by terming this as a case of intimidation by hotel owners.

Their statement said, “We are a customer-first company, and are proud of our ability to make good quality hotels available to consumers at the right price point, and will not bow down to the unreasonable demands of vested interest groups, a majority of which are owners running competing properties, instigating and intimidating independent hotel owners associated with OYO, and creating false public uproar,”

Oyo has maintained that this is a civil matter, more of a commercial dispute, and there is no need for hotel owners to act violent, and break any law.

Oyo has also threatened to take action against such hotel owners, who are holding Oyo employees as hostage.

Their statement said, “OYO hotels and Homes is committed to the safety and security of all its employees and shall take strong legal action against the concerned hotel owners.”

We will keep you updated, as more details come in.