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?


Sayaji Hotels Expands Presence with Effotel by Sayaji, Gangtok

Sayaji Hotels Expands Presence with Effotel by Sayaji, Gangtok

By Hariharan U

Published on May 18, 2026

Sayaji Hotels has announced the launch of Effotel by Sayaji, Gangtok, marking the brand’s entry into Gangtok, one of India’s most sought-after hill destinations.

Located in the peaceful neighbourhood of Tathangchen near the iconic Ridge Park, the hotel brings a refined and contemporary stay experience to the city known for its mist-covered mountains, monasteries, scenic valleys, and vibrant local culture.

Situated at an altitude of approximately 1,650 metres, Gangtok is widely recognised for its panoramic views of Mount Kanchenjunga, the world’s third-highest peak. The city blends natural beauty with urban energy, attracting both leisure and experiential travellers throughout the year.

Strategically positioned close to Ridge Park and within easy reach of MG Marg, the city’s bustling pedestrian boulevard, Effotel by Sayaji offers guests convenient access to Gangtok’s cultural and social hotspots. Ridge Park, lined with Himalayan flora and scenic pathways, remains one of the city’s most visited attractions for both tourists and locals.

Designed for modern travellers, the property features 32 rooms across categories including Deluxe King, Deluxe Twin, and Suite accommodations. The interiors combine clean contemporary aesthetics with functional comfort, catering to both business and leisure guests.

The hotel also houses The Cube, an all-day dining restaurant serving a multi-cuisine menu in a relaxed setting designed for travellers looking to unwind after exploring the region.

Speaking on the launch, Rajendra Joshi said, “We are delighted to bring the Effotel by Sayaji experience to Gangtok, a destination that continues to grow in prominence among both leisure and experiential travellers. With this launch, we aim to offer a smart, comfortable, and well-connected stay option that complements the city’s unique blend of natural beauty and cultural richness. Gangtok represents an exciting addition to our expanding footprint in emerging leisure markets across India.”

Sharing his views on the opening, Sangay Tenzing Norbu added, “We are proud to introduce Effotel by Sayaji to Gangtok, a city that holds immense potential as a year-round travel destination. This hotel has been envisioned as a space that reflects the region's warmth and spirit while delivering the quality and consistency for which Sayaji is known.”

The hotel is conveniently accessible from Bagdogra Airport and New Jalpaiguri Railway Station, making it a well-connected option for travellers visiting Sikkim.

With this addition, Sayaji Hotels continues to strengthen its presence across emerging leisure destinations in India, reinforcing its focus on delivering personalised and contemporary hospitality experiences.


Clarion Hotel Khayal Kochi Wins Indian Hotel of the Year Award

Clarion Hotel Khayal Kochi Wins Indian Hotel of the Year Award

By Hariharan U

Published on May 14, 2026

Clarion Hotel Khayal Kochi has earned a major international recognition after being awarded the Indian Hotel of the Year by Choice Hotels. The honour was presented during an event held in Las Vegas on 6 May 2026.

The achievement marks an important milestone for the property as well as the SUBA Group of Hotels, under which the hotel operates. The recognition highlights the hotel’s consistent focus on guest experience, hospitality standards, and operational excellence.

Presented under the “Best of Choice” platform, the award celebrates standout properties within the Choice Hotels network that have demonstrated exceptional performance and service quality.

The recognition places Clarion Hotel Khayal Kochi among the top-performing hospitality destinations representing India on a global stage, further strengthening its presence within the international hospitality industry.


Eight Continents Hotels & Resorts Expands Himachal Presence with RoyalPine Kasauli Launch

Eight Continents Hotels & Resorts Expands Himachal Presence with RoyalPine Kasauli Launch

By Hariharan U

Published on May 14, 2026

Eight Continents Hotels & Resorts has announced the launch of Treetop by Eight Continents - RoyalPine Kasauli, marking a significant expansion of the group’s presence in Himachal Pradesh and strengthening its portfolio of design-led experiential hospitality destinations in India.

The UK-based luxury hospitality and hotel management group, known for its focus on emotique hotels, continues its strategy of developing immersive, culturally rooted, and experience-driven stays across high-potential leisure markets.

Nestled amidst the hills of Kasauli, the 44-key property has been designed to offer uninterrupted valley views and sunset-facing experiences, with architecture that blends contemporary aesthetics with natural materials. Built along a natural gradient, every room has been positioned to maximise scenic vistas and create a strong connection with the surrounding landscape.

A key design highlight of the property is the use of knotless pine wood sourced from Finland, bringing warmth and a nature-inspired character to the overall guest experience.

The property features a range of lifestyle and wellness offerings including 8 Cafe and a restaurant and microbrewery concept, along with a sunset deck, dedicated gathering spaces, a spa, steam and sauna facilities, an infinity pool, and a 10-seater jacuzzi. The development reflects the growing consumer demand for boutique hospitality experiences that combine wellness, design, and destination-driven travel.

Speaking on the launch, Richa Adhia, Managing Director of Eight Continents Hotels & Resorts, said the addition of RoyalPine Kasauli aligns with the group’s broader strategy of building experience-led destinations in key leisure markets. She noted that Kasauli’s natural beauty and heritage charm make it an ideal setting for immersive hospitality experiences tailored to modern travellers seeking meaningful and design-focused stays.

Founded in 2020 by Haninder Sachdeva, Eight Continents Hotels & Resorts operates across India, the UK, and East Africa. Its hospitality portfolio includes brands such as Ocho Homes, Hanric, Treetop, and Stamps, all centred around boutique luxury, local storytelling, and experiential travel.

The launch of RoyalPine Kasauli comes at a time when India’s boutique hospitality segment continues to witness strong momentum, particularly in leisure and mountain destinations where travellers are increasingly prioritising personalised experiences, wellness, and destination authenticity over traditional hotel formats.

For more information, visit Eight Continents Hotels & Resorts

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