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?


Lemon Tree Hotels Expands Presence with New Properties in Andhra Pradesh and Chhattisgarh

Lemon Tree Hotels Expands Presence with New Properties in Andhra Pradesh and Chhattisgarh

By Hariharan U

Published on December 12, 2025

Lemon Tree Hotels Limited has announced the signing of two new properties, Lemon Tree Resort, Bapatla, Andhra Pradesh, and Lemon Tree Hotel, Bhilai, Chhattisgarh. Both properties will be managed by Carnation Hotels Private Limited, a wholly-owned subsidiary of Lemon Tree Hotels Limited, and mark a strategic expansion in the South and Central Indian markets.

Lemon Tree Resort, Bapatla is located in the serene coastal town of Bapatla, renowned for the tranquil Suryalanka Beach. The resort features 90 rooms, a restaurant and bar, banquet and meeting facilities, a swimming pool, spa, and fitness centre, offering guests a refreshing escape by the sea.

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Lemon Tree Hotel, Bhilai, situated in the industrial yet green city of Bhilai, home to the iconic Bhilai Steel Plant, blends urban convenience with calm surroundings. The hotel offers 72 keys, a restaurant, banquet and meeting spaces, swimming pool, and spa, catering to both business travellers and leisure guests seeking a value-driven experience.

Commenting on the expansion, Vilas Pawar, CEO – Managed & Franchise Business, Lemon Tree Hotels, said, "With these signings, we are pleased to extend our footprint to two unique locations. From thriving commercial hubs to serene, nature-led destinations, both states offer immense potential for quality hospitality. Andhra Pradesh already has six operational and three upcoming hotels, while this will be our first property in Chhattisgarh."

These new additions reaffirm Lemon Tree Hotels’ commitment to offering vibrant, contemporary hospitality experiences across India, combining comfort, convenience, and a warm guest-first ethos.


Cygnett Hotels & Resorts Expands Luxury Footprint with Two New Anamore Registry Collection Resorts in Rajasthan

Cygnett Hotels & Resorts Expands Luxury Footprint with Two New Anamore Registry Collection Resorts in Rajasthan

By Hariharan U

Published on December 12, 2025

Cygnett Hotels & Resorts today announced the signing of two landmark luxury resorts under the Anamore Registry Collection by Wyndham brand, marking a major step in its expansion into the luxury segment. This collaboration with Wyndham Hotels & Resorts aims to combine Cygnett's expertise in contemporary Indian design with Wyndham’s global reach and commercial support.

The first property, Anamore Registry Collection by Wyndham Pushkar, will span 18 acres and feature 288 rooms, making it one of Rajasthan’s largest luxury resorts for destination weddings and events. The resort will include 20,000 sq. ft. of banquet space, multiple dining venues, wellness facilities at Blum Mudra by Ayurvyaas, recreation zones, and more. Its opening is planned for the end of 2026.

The second project, Anamore Registry Collection by Wyndham Kukas Jaipur, will cover 25 acres and offer 150 rooms, 30,000 sq. ft. of banquet space, curated dining options, wellness amenities, and outdoor event areas. Located in one of Jaipur’s prime hospitality corridors, the resort is designed to cater to both domestic and international luxury travelers, with an expected opening in early 2029.

Sarbendra Sarkar, Founder & Managing Director of Cygnett Hotels & Resorts, said, “These two resorts mark an important milestone in our journey into luxury hospitality. The Anamore brand blends contemporary design, cultural richness, and soulful experiences. Our partnership with Wyndham ensures these destinations meet global standards while celebrating Indian artistry.”

Rahool Macarius, Market Managing Director Eurasia, Wyndham Hotels & Resorts, added, “These projects strengthen Wyndham’s Registry Collection in India. Together with Cygnett, we are bringing luxury resorts that combine world-class operations with culturally immersive experiences to Rajasthan.”

The resorts aim to position Rajasthan as a top destination for high-end travel, weddings, and celebrations. Both developments are being built by M/S Turban Landmarks LLP and STurban Resorts Private Limited.

About Cygnett Hotels & Resorts

Founded in 2014, Cygnett Hotels & Resorts is one of India’s fastest-growing hospitality companies, operating upscale and midscale hotels. With 45 hotels and 3,671 keys across India, the company plans to add over 1,000 keys annually, targeting more than 100 hotels and 9,000 keys by 2030. The portfolio includes Anamore Registry Collection by Wyndham®, Anamore Select Registry Collection by Wyndham®, Ayurvyaas®, La Quinta by Wyndham®, Cygnett Park™, Cygnett Hotels™, Cygnett Inn™, Cozzet™, and Cygnotel™ Collection.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company with approximately 8,300 hotels in 100 countries. Its portfolio includes 25 brands, including Registry Collection Hotels®, La Quinta®, Ramada®, Super 8®, Days Inn® and more. Wyndham Rewards offers over 121 million members access to stays and vacation experiences worldwide.


Wyndham Grand Unveils a Stunning Lakeside Luxury Escape in Udaipur

Wyndham Grand Unveils a Stunning Lakeside Luxury Escape in Udaipur

By Hariharan U

Published on December 11, 2025

Udaipur welcomes a new luxury landmark as Wyndham Hotels & Resorts opens Wyndham Grand Udaipur Fatehsagar Lake, a lavish lakeside retreat set across 26 acres of scenic landscapes. Overlooking the Aravalli mountains and minutes from Fatehsagar Lake, the resort marks Wyndham’s flagship debut in India’s luxury space.

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The grand opening saw an elegant gathering of hotel leaders, industry names and special guests. A traditional Rajasthani welcome set the tone—flower showers, tika and pag rituals, followed by vibrant Kachi Ghodi dancers and live regional music. With dusk settling over the hills, the celebration moved into curated culinary experiences that showcased Udaipur’s artistic and cultural charm.

Wyndham Grand Udaipur Fatehsagar Lake represents a defining milestone in our India journey. This resort is a perfect blend of Rajasthan’s timeless charm and Wyndham’s global standards,” said Rahool Macarius, Market Managing Director – Eurasia, Wyndham Hotels & Resorts.

The property mirrors Udaipur’s royal heritage, featuring 140 guestrooms and suites with Gokhda-style sit-outs, indulgent marble interiors and whirlpool bathtubs in select rooms. The upcoming Palace Wing will add 60 more rooms designed with an elevated heritage feel.

As a pure vegetarian resort, guests can enjoy Indian and global flavours at Pyaala, Shakahari and O Sian, each focusing on fresh, local ingredients.

The resort offers some of Udaipur’s most impressive event spaces, including:

  • One of the largest amphitheatres in the city

  • A lavish ballroom

  • Expansive Vintage Lawn for large gatherings under the night sky

For leisure, guests can unwind at the heated outdoor pool, indulge in wellness rituals at Zivaya Spa, or enjoy multiple sports—from tennis and badminton to cricket. Thoughtful services such as concierge support, childcare, butler service, bridal studios and even EV charging make stays seamless.

“Our goal was to create a space connected to the spirit of Udaipur, where mornings begin by the lake and evenings flow with warm Rajasthani hospitality,” the team shared.

With its blend of natural beauty, royal-inspired design and global comforts, Wyndham Grand Udaipur Fatehsagar Lake sets a fresh benchmark for luxury travel and celebrations in India’s beloved City of Lakes.

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