Delhi HC Dismisses Zostel Petition, Rules in Favour of OYO

Delhi HC Dismisses Zostel Petition, Rules in Favour of OYO

By Manu Vardhan Kannan

Published on May 15, 2025

OYO, the global travel-tech firm, secured a legal victory as the Delhi High Court ruled in its favour by setting aside the arbitral award related to its long-standing dispute with Zostel Hospitality, the parent company of ZO Rooms. The court also dismissed Zostel’s execution petition, bringing closure to the years-long legal tussle.

The court upheld OYO’s stance that it did not breach any agreement arising from the acquisition discussions held with Zostel in 2015. The judgment emphasised that no part of Zostel’s business was ever transferred to OYO and reinforced the legal principle that a determinable contract cannot be specifically enforced, aligning with precedents from the Supreme Court of India.

The dispute dates back to November 2015, when OYO and Zostel signed a non-binding term sheet to explore a possible acquisition. However, the transaction fell through due to failed due diligence and lack of mutual agreement on key commercial terms.

Zostel had initiated arbitration in September 2018, which resulted in a March 2021 arbitral award, a decision OYO promptly challenged. The legal battle continued with OYO securing an earlier win when the court dismissed Zostel’s injunction application in February 2022.

The Delhi HC's latest ruling affirms that no definitive agreement was ever finalised and that essential terms remained unsettled.

OYO, responding to the outcome, reiterated its commitment to technological innovation and operational excellence, continuing its mission to deliver quality accommodation experiences for customers worldwide.


OYO to Double Company-Serviced Hotel Revenue Share and Footprint by FY26

OYO to Double Company-Serviced Hotel Revenue Share and Footprint by FY26

By Manu Vardhan Kannan

Published on June 10, 2025

Global hospitality technology company OYO has announced an ambitious plan to expand its company-serviced hotels in FY26, doubling their booking revenue share from 22% to 44%, reinforcing the brand’s focus on delivering premium guest experiences and boosting profitability in the Indian market.

Currently operating over 1,300 company-serviced hotels across India, OYO’s fastest-growing segment includes Townhouse, Townhouse Oak, Capital O, Palette, and its premium brand SUNDAY—hotels that have consistently proven popular among mid-segment and premium travellers.

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The footprint of these company-serviced hotels will grow significantly from 124 cities to over 300 cities. New locations include Mohali, Faridabad, and Jalandhar in the North; Cuttack, Asansol, and Darjeeling in the East; Mangalore, Kollam, Port Blair, and Kasaragod in the South; and Bhilwara, Vapi, Junagarh, and Jalgaon in the West.

Higher Occupancy and Customer Satisfaction

These properties are already performing better than average. With a customer rating of 4.6, compared to OYO’s overall average of 4.0, and an occupancy rate 2.7 times higher than franchisee hotels, the company-serviced model is delivering strong guest loyalty and satisfaction. OYO’s internal data shows that the repeat customer rate is 1.3 times higher for these hotels.

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According to Varun Jain, Chief Operating Officer, OYO,

“The program is in line with OYO’s strategic focus for 2025 for the India market, which aims to drive profitability by enhancing the overall guest experience. The superior ratings reflect better service standards, well-maintained facilities, and a seamless guest experience which results in stronger guest loyalty and repeat stays in our hotels.”

Top Performing Properties

The top five company-serviced hotels based on guest feedback ratings include:

  • Palette Heritage Scindia Ghat, Varanasi

  • Super OYO Townhouse Oak Mahadevpura, Bangalore

  • OYO Townhouse Lakdi Ka Pul, Hyderabad

  • Palette Patel Nagar, Bhopal

  • Super OYO Townhouse Oak Alandur, Chennai

Company-Serviced Model: A Growth Engine

OYO first introduced the company-serviced model in FY23, where it contributed under 2% of booking revenue. Since then, it has become the company’s fastest-growing segment globally, supported by standardised operations, enhanced service quality, and a superior guest experience.

These hotels are listed as ‘Company Serviced’ on the OYO app and website, and offer property owners two models: revenue sharing or fixed rentals. With a dedicated on-ground team and channel partner network, OYO has rapidly scaled this segment by leveraging data-driven insights to identify high-demand areas and enhance service delivery.

The expansion will focus on leisure destinations, pilgrimage centres, and business corridors, where demand is strong and property owners are willing to engage in long-term partnerships.

OYO’s renewed focus on this model underlines its commitment to providing high-quality, reliable, and consistent stays for both business and leisure travellers, shaping the next phase of growth in India’s hospitality space.


ITDC Celebrates World Environment Day with Tree Plantation Drive Honouring Mothers and Earth

ITDC Celebrates World Environment Day with Tree Plantation Drive Honouring Mothers and Earth

By Manu Vardhan Kannan

Published on June 10, 2025

India Tourism Development Corporation (ITDC), a public sector enterprise under the Ministry of Tourism, Government of India, marked World Environment Day 2025 with a meaningful and symbolic event at The Ashok and Hotel Samrat, Chanakyapuri.

Centred around the heartfelt campaign ‘Ek Ped Maa Ke Naam’, this initiative aligns with Prime Minister Narendra Modi’s nationwide call to plant a tree in honour of one’s mother, a tribute that intertwines gratitude with ecological consciousness.

The event was led by Ms. Mugdha Sinha, IAS, Managing Director, ITDC, and witnessed enthusiastic participation from Functional Directors, senior management, and dedicated staff. Notably, ITDC also honoured its gardening personnel and their children — the often-unsung green champions behind the lush surroundings of The Ashok and Hotel Samrat.

This initiative resonated with the United Nations’ 2025 World Environment Day theme — “Beat Plastic Pollution”, as ITDC showcased its strong commitment to a plastic-free, sustainable future.

A symbolic tree plantation drive formed the core of the event, where each participant planted a sapling in their mother’s name, creating a deep emotional and environmental connection with the act of nurturing life.

Speaking at the event, Ms. Mugdha Sinha, IAS, shared,

“Planting a tree in the name of a mother is like paying homage to the universal Mother Earth, the nurturing life force that procreates, nurtures, and sustains all of life. Inspired by Hon’ble Prime Minister's call of ‘Ek Ped Maa Ke Naam’, on this World Environment Day, ITDC reiterates its commitment towards a circular economy and sustainable environment, free from plastic waste.”

ITDC’s flagship properties, The Ashok and Hotel Samrat, already exemplify climate-responsive architecture, with designs that follow natural contours, preserve existing trees, and minimise heat-island impact. This creates a naturally cooler microclimate and reinforces ITDC’s focus on eco-conscious hospitality.

As the world comes together to celebrate sustainability, ITDC’s tribute to both mothers and Mother Earth stands as a touching and timely reminder of the nurturing power shared by the two.


IHCL Expands to McLeodganj with New Gateway Hotel Signing

IHCL Expands to McLeodganj with New Gateway Hotel Signing

By Manu Vardhan Kannan

Published on June 9, 2025

Indian Hotels Company (IHCL) has announced its foray into McLeodganj, Himachal Pradesh, with the signing of a 65-key Gateway hotel, strategically located just a short walk from the Dalai Lama Temple and Namgyal Monastery—important landmarks in the heart of the town.

This brownfield project, developed in partnership with Mcleo Times Square, further strengthens IHCL’s footprint in key leisure destinations across the state. Speaking on the development, Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL, said,

“This signing is in line with IHCL’s strategy of strengthening its presence in Himachal Pradesh across key leisure destinations like Shimla, Manali, Dharamshala, Naldhera, and Sirmaur among others. McLeodganj with its cultural richness is attracting both domestic and international tourists. We are delighted to partner with Mcleo Times Square for this project.”

Gateway McLeodganj will offer panoramic views from its cliffside location, overlooking lush valleys and snow-covered peaks. Just steps away from the vibrant McLeodganj market, the hotel is ideally positioned to cater to both leisure and spiritual travellers.

The hotel will feature:

  • An all-day dining restaurant

  • A bar

  • Meeting rooms

  • A fitness centre

  • A spa

Rahul Pathania of Mcleo Times Square added,

“We are excited to partner with IHCL to bring the Gateway brand to McLeodganj. This collaboration will offer guests an authentic yet contemporary hospitality experience in this vibrant destination.”

Nestled in the scenic Kangra district, McLeodganj is known for its monasteries, trekking trails, and rich cultural experiences, making it a favourite among spiritual seekers and nature lovers. With this new addition, IHCL now has 13 hotels in Himachal Pradesh, including eight under development, reinforcing its leadership in the region’s hospitality landscape.

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