Oyo cancels contracts as revenues take a hit

Oyo has suspended contracts with over 250 hotel owners for its ‘Townhouse’ properties across India, as it looks to renegotiate fixed payment agreements after its revenues took a hit due to the nationwide lockdown

Oyo has terminated minimum business guarantee (MGB) agreements, a fixed amount payable to property owners on a monthly basis, according to emails sent by Oyo to hoteliers. It has instead offered new terms, urging them to adopt a revenue sharing model, said at least six Oyo Townhouse property owners. Townhouse is positioned as a “mid-market boutique hotel brand", and the 250 hotel properties across 19 cities are co-owned with Oyo, and operate as franchises.

5 views0 comments
  • Amazon Social Icon
  • Facebook Social Icon
  • LinkedIn Social Icon
  • Twitter Social Icon
  • Instagram

© 2021 by StartupNews. Proudly created in India