Mass Exodus At Oyo: 700 Hotels From 100 Cities Have Left Oyo Rooms In 7 Months

By Mohul Ghosh Last updated Nov 23, 2019

Mass Exodus At Oyo: 700 Hotels From 100 Cities Have Left Oyo Rooms In 7 Months

Oyo Rooms, which has claims to become World’s 3rd largest hotel chain, and rapidly expanding in China, USA and Europe, is in deep trouble back in India.

As per India’s most powerful hotel lobby, more than 500 hotels across 100 cities have left Oyo Rooms, in the last 7 months.

However, Oyo has strongly denied these claims.

Mass Exodus At Oyo Rooms

Pradeep Shetty, honorary secretary, Federation of Hotel and Restaurant Associations of India (FHRAI) has stated that rebellion against Oyo Rooms by Indian hoteliers is expanding at a rapid pace.

As per him, 500-700 hotels have already quit Oyo’s platform, and are now taking bookings independently.

He said, “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,”

The main reasons for which hotels are ditching Oyo Rooms are: non-payment of previous dues, violation of contract terms, stopping minimum income guarantee, threatening legal action and more.

Which Cities Are Leading In Protests?

As per reports coming in, most of the exodus of hotels from Oyo has happened in Hyderabad, Pune, Bengaluru, Chennai, Noida, Gurgaon and Kolkata.

At the time, hotels in smaller cities such as Karnal, Ludhiana, Guntur, Tirupur and Jamnagar have also picked up.

But Hotels Are Not Able To Get Away

Now, the alarming part.

Despite hotels ending their contracts, they haven’t been able to get complete freedom.

Their listings are still visible on Oyo, and they are always sold-out, which deters tourists from booking them.

Hence, the hotels which have left Oyo Rooms, are in fact trapped from both the sides.

Oyo Denies These Numbers

Oyo Rooms has strongly denied that 500-700 hotels have left their platform, and have claimed that less than 1% of the listed hotels actually leave them, in a given year.

In a statement, Oyo said, “As we continue to strengthen our focus on customer experience, we are taking strict measures against hotel owners who don’t comply with our quality metrics and compromise customer satisfaction.”

In fact, as per Oyo, they are the ones who remove some hotels from their network, due to quality issues.

On the other hand, Hotel Associations are claiming that Oyo hasn’t given them no-objection certificates, and this is the reason their listings are still visible, with ‘sold out’ message.

We will keep you updated, as we receive more updates.