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.