OYO Faces Rising Turmoil: Layoffs, Legal Troubles, and Hotelier Backlash

OYO Faces Rising Turmoil: Layoffs, Legal Troubles, and Hotelier Backlash

By Nishang Narayan

Published on December 26, 2024

The troubles for OYO, one of India’s most prominent unicorn startups, continue to escalate. According to an Economic Times report, the company plans to lay off 2,000 employees by the end of January as part of its cost-cutting measures, which also include automation of processes. While OYO touts itself as one of the “best places to work,” the planned layoffs come amidst mounting internal and external challenges.

An OYO spokesperson stated, “OYO continuously tracks performances of individuals, and depending on the results and the individual’s interests, we may replace some candidates after giving them the opportunity to go through a performance improvement programme.” However, layoffs are just one part of the growing crisis the company faces.

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Backlash from Hotel Owners

OYO’s problems extend beyond its workforce. The startup is under fire from hotel owners across various markets for unpaid dues and unfavorable contract terms. In India, the dissatisfaction has even led to legal action. Recently, a Bengaluru hotelier filed a cheating case against OYO founder Ritesh Agarwal and six others, alleging non-payment of INR 7 lakh per month since May 2019.

Globally, similar issues persist. In the United States, hotel owners have raised concerns about OYO’s partner management system, citing its inefficiency and failure to meet payment commitments. In Japan, Yahoo terminated its partnership with OYO due to increasing complaints from hotel owners. Even in China, where OYO claims to be one of the largest hotel chains, property owners report receiving lower payments than initially promised.

Regulatory Scrutiny

Adding to its woes, OYO is also under investigation by the Competition Commission of India (CCI). The probe focuses on a commercial agreement between OYO and MakeMyTrip, examining whether the partnership creates an unfair dominant position in the market.

Global Troubles Continue

The startup’s ambitious expansion into the US market has not been smooth, with several hotel owners expressing dissatisfaction with OYO’s operations. The issues of unpaid dues and operational inefficiencies seem to mirror the problems reported in other markets.

Despite these challenges, OYO continues to assert its commitment to growth and operational excellence. However, the growing dissent from hotel owners, legal battles, and regulatory scrutiny highlight a critical need for the company to address its operational inefficiencies and rebuild trust with its partners.

With these mounting issues, the road ahead for OYO appears increasingly complex. Will the unicorn be able to navigate these turbulent waters, or is its ambitious expansion strategy taking a toll on its foundational stability?


Araiya Hotels Expands with Amaraya Resort in Uttarakhand

Araiya Hotels Expands with Amaraya Resort in Uttarakhand

By Author

Published on March 26, 2026

Araiya Hotels and Resorts has expanded its footprint with the addition of Amaraya Resort to its Araiya Anthology collection, marking another step in its growth across key leisure destinations in India.

Set in the peaceful Himalayan foothills near Nainital, the newly added retreat offers a quiet and intimate stay experience. Spread across 2.5 acres of terraced orchards, Amaraya is designed as a boutique escape with just 11 thoughtfully designed suites.

True to the brand’s design-led approach, each suite blends seamlessly with its natural surroundings, offering mountain views, ample natural light, and a smooth connection between indoor comfort and the outdoors. The property reflects Araiya’s focus on creating spaces that feel both refined and rooted in their location.

Guests can enjoy a mix of curated experiences, from personalised dining at signature venues to wellness activities like sunrise yoga and guided meditation. For those looking to explore, the surrounding landscape offers opportunities for private treks and local experiences that bring the destination to life.

At Araiya, we are drawn to places that evoke something deeper, where landscape and emotion intersect. As part of the Araiya Anthology, a collection of stories shaped by place - Amaraya near Tagore Top, Nainital, reflects our belief in creating spaces that are not just destinations, but experiences of pause, reflection, and connection. The design is intentionally understated, with thoughtful interventions, natural light filtering through skylights, warmth underfoot, and materials that respond to the mountain climate, coming together to create a sense of effortless comfort,” said Amruda Nair, founder and CEO, Araiya Hotels and Resorts.

With this addition, Araiya continues to build its presence in India’s premium travel destinations, focusing on intimate, experience-led stays that bring together design, nature, and meaningful hospitality.


ITC Hotels Signs Storii Mukundgarh Fort in Rajasthan

ITC Hotels Signs Storii Mukundgarh Fort in Rajasthan

By Hariharan U

Published on March 26, 2026

ITC Hotels has expanded its experiential brand Storii with the signing of Storii Mukundgarh Fort, further strengthening its presence in Rajasthan.

Located in the culturally rich Shekhawati region, the property reflects the brand’s focus on immersive, place-led hospitality rooted in heritage and storytelling. The addition brings a distinctive historic destination into the Storii portfolio, known for its curated and experience-driven stays.

Mukundgarh Fort, a well-preserved mid-18th century structure, stands as a reflection of Rajasthan’s architectural and artistic legacy. The region is often referred to as India’s ‘open-air art gallery,’ known for its detailed frescoes, ornate havelis, and vibrant cultural narratives.

The fort continues to retain its original charm through painted interiors, jharokhas, courtyards, arched corridors, and heritage columns, offering guests an authentic glimpse into its past while blending it with modern hospitality.

Strategically located along the heritage circuit connecting Jaipur, Mandawa, and Nawalgarh, Mukundgarh attracts travellers looking to explore Rajasthan’s culture, art, and history more closely.

Commenting on the development, Anil Chadha, managing director, ITC Hotels Limited, said, “Brand Storii celebrates stories of place, identity, and meaningful encounters. Mukundgarh embodies this ethos beautifully. The town’s rich traditions and cultural vibrancy lend the perfect backdrop for a Storii property. With Storii Mukundgarh Fort, we are delighted to bring an authentic experience to our guests, one that reflects the legacy of this eminent region.”

Durga Prasad Agarwal, director, Midas Hospitality Services Private Limited, added, “There is life and a heartbeat in Mukundgarh, its frescoes, its traditions, its timeless rhythm. Through our association with Storii by ITC Hotels, we hope to honour that essence and share it with a wider world. Together, we aim to welcome guests into a space where heritage is preserved and experienced through its art and architecture.”

With this signing, ITC Hotels continues to build Storii as a collection of unique properties that celebrate local character, culture, and meaningful travel experiences.


Kerten Hospitality Plans India Entry with Lifestyle Brands

Kerten Hospitality Plans India Entry with Lifestyle Brands

By Hariharan U

Published on March 26, 2026

Kerten Hospitality is set to enter the Indian market as part of its next phase of global growth, bringing its portfolio of lifestyle-driven hotel brands to the country.

With a strong presence across the Middle East, Europe, and Africa, the Ireland-headquartered group is planning to introduce its concepts in India with an initial target of 1,000 keys. This move marks a major step in its expansion strategy, as the company looks to tap into India’s growing demand for experience-led hospitality.

As part of its India entry, Kerten Hospitality will introduce three of its brands, The House Hotel, a bespoke luxury offering rooted in local culture; Cloud7 Hotels, a design-focused lifestyle concept; and HOSME, which combines affordability with a social hospitality approach.

India is being positioned as a key market for the group, especially as demand for lifestyle-led and culturally immersive stays continues to grow. The company’s model focuses on creating experiences that reflect local identity while maintaining global operational standards.

The expansion follows a strong performance phase for Kerten Hospitality, with significant growth in revenues, operating profits, and management fees driven by steady demand and expansion across multiple regions. The group has also been actively signing new projects across high-growth markets, building a strong pipeline across continents.

At the core of its approach is a focus on offering meaningful experiences over standardised stays. Kerten’s flexible, owner-first model allows property owners to adapt brand concepts to local contexts while benefiting from the group’s global expertise in operations, marketing, and talent management.

To support its India plans, the company has set up a dedicated office and is already engaging with asset owners across key destinations.

It’s well known that India is one of the most dynamic travel markets in the world, with robust tourism fundamentals and an increasing appetite for lifestyle-driven hospitality experiences. As travellers increasingly seek destinations that combine culture, design and community, we see significant potential for innovative hospitality concepts that reflect the spirit and diversity of the country. At Kerten Hospitality, our business model is based on developing destinations that go beyond the realm of traditional hospitality, bringing together culture, creativity and meaningful guest experiences. We are already seeing a strong demand from developers and owners and will soon be able to cater to the vast diaspora of Indian consumers with Kerten-managed properties across the country,” said Marloes Knippenberg.

With a growing pipeline of projects and a presence across multiple regions, Kerten Hospitality’s India entry signals its intent to be part of the country’s fast-evolving hospitality landscape.

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