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?


Summit Hotels & Resorts Introduces Pet-Friendly Stays Across Hill Destinations

Summit Hotels & Resorts Introduces Pet-Friendly Stays Across Hill Destinations

By Manu Vardhan Kannan

Published on July 26, 2026

Responding to the growing trend of pet-inclusive travel, Summit Hotels & Resorts has introduced pet-friendly accommodation across selected properties in Eastern and Northeast India. The initiative comes as more Indian travellers choose to include their pets in holidays instead of leaving them behind.

The hospitality group said the move reflects changing travel preferences, with guests increasingly looking for personalised and experience-driven stays where pets are treated as part of the family. Industry trends have also shown a steady rise in demand for pet-friendly accommodation, particularly in hill stations and nature-based destinations.

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As part of the rollout, Summit Hotels & Resorts will offer designated pet-friendly room categories at selected properties in Gangtok, Darjeeling, Kalimpong, Kaziranga and Tashigang. The offering will initially be available in specific accommodation types, including cottages, villas, premium rooms and select ground-floor rooms.

Commenting on the initiative, Sumit Mitruka, CEO, Summit Hotels & Resorts, said:

"We are seeing a noticeable shift in travel patterns where guests increasingly want their pets to be part of the holiday experience. Destinations in the hills and nature-focused locations naturally align with this trend because travellers are seeking more relaxed and family-oriented experiences. Hospitality today is becoming more personalised, and adapting to changing guest preferences is becoming increasingly important."

The introduction of pet-friendly stays is part of the company's broader strategy to enhance experience-led hospitality across its portfolio of leisure destinations. Summit Hotels & Resorts is also finalising a nominal fee structure for pet stays, which will apply to the designated pet-friendly room categories.

With this initiative, the hotel group aims to provide greater flexibility for travellers while responding to the increasing demand for accommodation that welcomes both guests and their four-legged companions.


Novotel Vijayawada Varun Strengthens Sustainable Hospitality Initiatives on World Nature Conservation Day

Novotel Vijayawada Varun Strengthens Sustainable Hospitality Initiatives on World Nature Conservation Day

By Hariharan U

Published on July 25, 2026

Novotel Vijayawada Varun has reinforced its commitment to sustainable hospitality practices on the occasion of World Nature Conservation Day, observed on July 28, by highlighting its ongoing initiatives focused on environmental responsibility, resource conservation, and responsible tourism.

Aligned with this year's theme of “Living Sustainably in Harmony with Nature,” the hotel continues to integrate sustainability into its daily operations through cleaner energy solutions, waste reduction practices, and responsible resource management.

One of the key sustainability initiatives undertaken by the property was the transition from diesel to Piped Natural Gas (PNG) for boiler operations used in laundry steam generation. Implemented in March 2023, the initiative has contributed to an estimated annual reduction of approximately 98 tonnes of carbon dioxide emissions while eliminating sulphur dioxide emissions associated with diesel-based operations.

The hotel has also expanded its renewable energy adoption through solar power. Since early 2025, solar energy has contributed approximately 33 to 44 per cent of the property's monthly electricity requirements, resulting in an estimated annual reduction of around 1,476 to 1,968 tonnes of carbon dioxide emissions.

Beyond operational efficiencies, Novotel Vijayawada Varun has incorporated sustainability into the guest experience through initiatives such as complimentary electric vehicle charging stations, encouraging cleaner mobility among travellers. The property has also eliminated single-use plastics as part of its efforts to minimise waste and promote environmentally conscious practices.

Commenting on the initiative, Manish Pathak, Hotel Manager, Novotel Vijayawada Varun, said, "World Nature Conservation Day reminds us that every organization has an opportunity to contribute towards a healthier planet through meaningful action. We remain committed to adapting responsible practices that create a positive environmental impact while delivering a seamless experience for our guests."

The hotel's sustainability efforts have also received international recognition through the Green Key Certification, awarded by the Foundation for Environmental Education, acknowledging its commitment towards responsible environmental practices.

As sustainability continues to influence the future of travel and hospitality, Novotel Vijayawada Varun remains focused on creating a greener hospitality ecosystem through cleaner energy adoption, conscious operations, and responsible guest experiences.


LaRiSa Hotels & Resorts Expands Uttarakhand Presence with Two New Hotel Management Agreements

LaRiSa Hotels & Resorts Expands Uttarakhand Presence with Two New Hotel Management Agreements

By Hariharan U

Published on July 24, 2026

LaRiSa Hotels & Resorts has expanded its presence in Uttarakhand with the signing and launch of two new Hotel Management Agreements for Ramgarh Vatika and Kumaon Cottage, both joining the portfolio under the AM Hotel Kollection.

The additions mark another milestone in LaRiSa’s growth journey, taking its presence in India to 39 hotels while strengthening its footprint in the Kumaon region, which continues to attract travellers seeking peaceful, nature-led, and experiential stays.

Located near Nainital, both properties offer guests a quieter alternative to conventional hill destinations while retaining easy access to the region’s attractions. Rooted in their surroundings, Ramgarh Vatika and Kumaon Cottage reflect LaRiSa’s focus on creating hospitality experiences that celebrate local character, heritage, and regional culture.

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Ramgarh Vatika is a wooden chalet-style boutique retreat situated in the hills of Ramgarh at an altitude of over 4,500 feet. The property offers mountain-facing views, an in-house restaurant featuring freshly prepared cuisine and local Kumaoni specialities, along with curated experiences inspired by the natural surroundings.

Kumaon Cottage, meanwhile, carries a rich heritage legacy, having originated as a private home nearly 180 years ago. Over the years, the property has been transformed into a boutique stay while preserving its traditional charm through carved wooden doors, sheesham wood flooring, and handcrafted furniture created by local artisans.

The dining experience at Kumaon Cottage focuses on fresh organic ingredients and regional flavours, with in-house chefs creating dishes that reflect the culinary traditions of Kumaon.

Commenting on the new additions, Randhir Narayan, CEO, LaRiSa Hotels and Resorts, said, "Signing Ramgarh Vatika and Kumaon Cottage was not a move to add more hotels to our portfolio, rather a way to deepen our connection to a landscape and a way of travelling that feels quieter and more personal. Both hotels are rooted in their surroundings, and that is exactly what guides us when we grow: to build with intention, not just ambition."

With these additions, LaRiSa continues to strengthen its presence across India through its three brands, LaRiSa Resorts, AM Hotel Kollection, and 8fold by LaRiSa. The company focuses on developing professionally managed properties that combine warm hospitality, regional experiences, and a strong connection with their destinations.

The expansion into Uttarakhand reflects the growing demand for boutique mountain retreats and experiential hospitality, as travellers increasingly seek meaningful stays beyond traditional tourist destinations.

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