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?


NILE Hospitality to Launch Rajkot’s First International Branded Hotel with Radisson Hotel Group

NILE Hospitality to Launch Rajkot’s First International Branded Hotel with Radisson Hotel Group

By Author

Published on May 25, 2026

NILE Hospitality has announced the upcoming opening of Park Inn & Suites by Radisson Rajkot, marking a significant milestone in Rajkot’s hospitality landscape as the city’s first internationally branded hotel.

The launch further strengthens NILE Hospitality’s growing portfolio of internationally managed properties while reinforcing its long-term strategic collaboration with Radisson Hotel Group. The upcoming property represents the seventh operational partnership between the two organisations and is expected to be the first among several Park Inn & Suites developments planned across emerging Indian markets.

Located in one of Gujarat’s fastest-growing commercial hubs, the hotel will feature 55 contemporary rooms, an all-day dining restaurant, and modern banquet facilities spread across approximately 2,500 sq. ft., catering to business meetings, social gatherings, and events.

The property will operate as an exclusively vegetarian hotel, reflecting regional culinary preferences and evolving traveller expectations in the Gujarat market.

The opening is expected to significantly elevate Rajkot’s hospitality ecosystem by introducing globally benchmarked service standards to a city witnessing strong industrial, commercial, and infrastructure-driven growth. Rajkot continues to emerge as a key business centre in Gujarat with thriving engineering, automobile, manufacturing, and SME sectors, creating increasing demand for professionally managed branded hospitality offerings.

Speaking on the development, Vikram Singh Chauhan said, “The hospitality landscape in Rajkot continues to undergo significance in line with the long-term development of its diverse economy and potential. Introducing Rajkot’s first international branded hotel, along with NILE’s long-established presence in Gujarat and Radisson’s world-class distribution network, will put us in a great position to contribute to the ongoing growth and diversification of the city’s hospitality sector.”

He further added that the collaboration with Devdwarika LLP as promoters reinforces the company’s commitment towards offering premium accommodation experiences for both leisure and business travellers seeking globally recognised hospitality standards.

The project highlights the growing importance of emerging urban markets within India’s hospitality expansion story, with branded hotel operators increasingly targeting high-growth commercial cities beyond major metros.


Ramee Group of Hotels Expands East India Footprint with Upcoming Hotel in Gaya

Ramee Group of Hotels Expands East India Footprint with Upcoming Hotel in Gaya

By Hariharan U

Published on May 25, 2026

Ramee Group of Hotels has announced its upcoming hospitality project in Gaya, further strengthening the group’s growing presence across East India. The expansion aligns with the company’s broader strategy of entering high-potential destinations driven by spiritual tourism, leisure travel, and business demand.

Recognised as one of India’s most significant pilgrimage destinations, Gaya continues to attract strong domestic and international footfall, supported by improving tourism infrastructure and enhanced connectivity. The city’s growing hospitality demand has made it an important market for hotel brands looking to expand into emerging travel hubs.

The upcoming property is being designed to offer a blend of comfort, convenience, and contemporary hospitality experiences. The hotel will feature well-appointed guest rooms, an all-day dining restaurant, banquet facilities, and an open-to-sky jacuzzi experience aimed at both leisure and spiritual travellers.

The property is also expected to position itself as a preferred venue for weddings, conferences, corporate events, and social gatherings with nearly 4,000 sq. ft. of dedicated banquet space.

Speaking on the expansion, Saurabh Gahoi said, “East India remains a key focus market in the company’s expansion plans, with Gaya emerging as a strategic hospitality destination due to its religious importance, growing tourism landscape, and improving infrastructure. The property aims to offer a seamless and guest-centric experience for both pilgrimage and business travellers.”

He further highlighted that increasing tourism activity and rising demand for quality accommodation continue to strengthen Gaya’s position as a promising growth market for the hospitality sector.

The launch marks another step in Ramee Group’s ongoing India expansion strategy as the company continues to build a diversified hospitality portfolio across business, leisure, and pilgrimage-led destinations. The group remains focused on delivering thoughtfully designed hospitality experiences backed by service excellence and guest comfort.


IHCL Goa Celebrates Cultural Diversity Through Inclusive Hospitality Initiatives

IHCL Goa Celebrates Cultural Diversity Through Inclusive Hospitality Initiatives

By Hariharan U

Published on May 25, 2026

Indian Hotels Company Limited (IHCL) Goa marked World Day for Cultural Diversity for Dialogue and Development on 21 May by reinforcing its commitment towards inclusive hospitality, cultural preservation, and community-driven experiences across its Goa properties.

Recognised globally by UNESCO and the United Nations, the day highlights the importance of cultural diversity, dialogue, mutual respect, and inclusion in building stronger communities and sustainable societies.

Through a range of initiatives spanning regional cuisine, local artisan collaborations, traditional celebrations, and cross-cultural employee engagement programmes, IHCL Goa continues to integrate cultural diversity into its hospitality experiences.

Key initiatives include the Tribal Food Festival hosted in association with the Tata Steel Foundation at Taj Exotica Resort & Spa Goa, regional food festivals at Taj Holiday Village Resort & Spa, cross-cultural team activities at Taj Fort Aguada Resort & Spa, and local artisan collaborations at Taj Cidade de Goa.

The company also continues to celebrate Goa’s rich cultural traditions through events and festivities including Sao Joao celebrations, Carnival parades, and cake mixing ceremonies hosted across its hotels in the state.

Speaking on the occasion, Ranjit Phillipose said Goa has always represented a confluence of cultures, traditions, and stories from across the world, adding that IHCL Goa remains focused on creating hospitality experiences where diversity is celebrated through people, cuisine, service, and local engagement.

He further highlighted that cultural diversity within hospitality is not only about coexistence, but also about encouraging learning, dialogue, and meaningful human connections among guests, employees, and communities.

IHCL Goa’s initiatives reflect the growing importance of culturally immersive and locally rooted hospitality experiences within India’s luxury tourism sector, while also supporting regional communities, traditions, and talent.

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