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?


ALIVAA Hotels & Resorts Ties Up with FLXHO to Strengthen Corporate Hospitality Presence in Gurugram

ALIVAA Hotels & Resorts Ties Up with FLXHO to Strengthen Corporate Hospitality Presence in Gurugram

By Hariharan U

Published on January 23, 2026

ALIVAA Hotels & Resorts has entered into a strategic alliance with FLXHO Hotels & Residences to accelerate sales growth and strengthen its market presence in Gurugram, one of India’s most significant corporate and technology hubs. The partnership brings FLXHO Cyber One, a 68-room property located in DLF Phase 3 on MG Road, under The Hoften brand, expanding ALIVAA’s footprint in the city.

With this addition, ALIVAA now oversees a strong Gurugram network comprising one flagship ALIVAA hotel and five The Hoften properties. The move is aimed at leveraging ALIVAA’s established distribution strength, corporate relationships, and sales expertise to drive higher occupancy and revenue across its Gurugram cluster.

Gurugram, often referred to as the Millennium City, continues to be a major base for Fortune 500 companies, multinational offices, and a rapidly growing startup ecosystem. This has resulted in sustained demand for efficient, well-connected corporate accommodation. The alliance positions ALIVAA to cater more effectively to this demand by integrating FLXHO Cyber One’s inventory into its commercial strategy.

FLXHO Cyber One joins The Hoften, ALIVAA’s business-focused brand designed for corporate travellers who value efficiency, connectivity, and functional comfort. The brand is positioned to appeal strongly to large corporate accounts seeking consistency and reliability across multiple locations within the city.

Commenting on the alliance, Vikramjit Singh, Founder, ALIVAA Hotels & Resorts, said, “Securing leadership in high-yield urban centres like Gurugram is central to our vision. This alliance marks the beginning of a long-term relationship with FLXHO, with plans to co-develop multiple future assets. It reinforces ALIVAA’s position as a preferred partner for owners focused on strong sales performance and professional management.”

Akash Bhatia, CEO – Managed & Franchise Business, ALIVAA Hotels & Resorts, added, “The FLXHO alliance is a calculated step to scale our mid-market sales capabilities. This is our fifth Hoften property in Gurugram and it allows us to offer corporate clients a reliable, high-volume network that drives stronger conversions and consistent value.”

Sharing his perspective, Nipun Bhandari, Founder, FLXHO, said the partnership would help unlock the full commercial potential of FLXHO Cyber One through ALIVAA’s extensive market reach and distribution strength. Sidharth Aggarwal, COO, FLXHO, noted that the collaboration aligns with FLXHO’s vision of offering flexible, adaptive living solutions for modern professionals.

The alliance was facilitated by Harpreet Chatwal, who highlighted that the integration of FLXHO’s asset into ALIVAA’s sales engine is expected to translate directly into higher occupancy and improved market share for both brands.

Through this partnership, ALIVAA and FLXHO aim to set a stronger benchmark in Gurugram’s corporate hospitality segment, combining flexible living concepts with a focused, performance-driven sales approach.


Day of Gratitude Marks the Beginning of an Annual Commitment to Community Giving

Day of Gratitude Marks the Beginning of an Annual Commitment to Community Giving

By Manu Vardhan Kannan

Published on January 23, 2026

Radisson Blu Bengaluru Outer Ring Road has announced the launch of Day of Gratitude, a new annual initiative observed on January 14, centred on reflection, responsibility, and meaningful community giving. Envisioned as a long-term commitment, the initiative will support a different cause each year, guided by a simple yet thoughtful approach of listening first, understanding real needs, and responding with intention.

The initiative was observed for the first time on January 14 this year, with a focus on supporting a local government school in the neighbourhood. Contributions were directed towards fulfilling specific requirements identified through direct on-ground engagement, ensuring that the support addressed genuine and immediate needs.

As part of the initiative, proceeds generated from lunch and dinner services at Mélange, the hotel’s all-day dining restaurant, were dedicated towards supporting the local school. This effort reinforced the belief that everyday actions, when driven by purpose, can create a meaningful and lasting impact within the community.

Speaking on the initiative, Christina Roach, Director, Roach Lifescapes, owners and operators of Radisson Blu Bengaluru Outer Ring Road, said, “Radisson Blu Bengaluru Outer Ring Road has been part of this city since 2007, and we are deeply grateful for the trust and support extended to us over the years. This Day of Gratitude is our way of saying thank you for the love and support. Starting this year we would like to build a culture of giving that evolves year after year, shaped by the causes that need attention the most.”

She added, “This year, contributions generated at Mélange on January 14 were directed towards supporting local school children. In the years ahead, the cause may change, but the intent will remain constant, to give compassionately.”

Through Day of Gratitude, Radisson Blu Bengaluru Outer Ring Road aims to establish a sustained culture of empathy and responsibility, reinforcing its connection with the city while continuing to contribute positively to the community it calls home.


The Oterra Hotel Achieves Prestigious IGBC Green Existing Building Platinum Award

The Oterra Hotel Achieves Prestigious IGBC Green Existing Building Platinum Award

By Manu Vardhan Kannan

Published on January 23, 2026

The Oterra Hotel, Bengaluru, has reached a major milestone in its sustainability journey by being awarded the Platinum Rating under the IGBC (Indian Green Building Council) Green Existing Buildings category for the year 2025–2026. With this recognition, The Oterra has emerged as the highest-rated green existing building in India, reinforcing its position as a leader in future-ready hospitality.

Conferred by the CII – Indian Green Building Council, the Platinum certification represents the highest level of achievement in the category. The recognition is especially significant as it involves a detailed and rigorous evaluation of energy efficiency, water conservation, waste management, ecofriendly commuting practices, and innovation, while maintaining high standards of indoor environmental quality and guest well-being.

In addition to the Platinum certification, The Oterra’s focus on “Sustainable Luxury” has also earned it two national-level honours. The hotel received the IGBC Performance Challenge Award for Green Buildings, recognising measurable outcomes in resource conservation, along with the Excellence Award for its overall leadership and holistic contribution to the hospitality sector.

The achievement reflects years of careful planning and consistent action towards Net Zero goals. In collaboration with Earthonomic Engineers, The Oterra has successfully aligned premium guest experiences with environmentally responsible operations, demonstrating that luxury and sustainability can go hand in hand.

Commenting on the recognition, Srinivas Adiga, General Manager at The Oterra Hotel, said, "This honor reflects the tireless efforts of our teams who work every day with passion, integrity, and care for the environment. Each initiative and innovation has led us to this proud moment. We reaffirm our promise to continue raising the bar for sustainable hospitality and creating experiences that leave a positive impact on the world."

As India moves towards more defined and demanding environmental benchmarks, The Oterra’s achievement stands as a strong example for the industry. The hotel’s approach is rooted in the belief that the future of hospitality lies in balancing world-class service with a reduced ecological footprint, setting a benchmark for responsible growth in the sector.

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