OYO Believes FHRAI Misguided with Incorrect Allegations; To Further Address Partners’ Concerns through One-to-One Dialogue

While OYO will continue to engage with FHRAI and with its asset owners on a one-to-one basis, to resolve issues if any, and the company strongly condemns the misplaced demands of certain organisations, as the same is not in the best interest of consumers or asset owners.

OYO, INDIA’S leading chain of hotels, homes and living spaces, yesterday confirmed that while they have received the recommendations made by FHRAI, the company believes that same are based on invalid claims by certain bodies which seem to have been misleading the apex body.

While OYO will continue to engage with FHRAI and with its asset owners on a one-to-one basis, to resolve issues if any, and the company strongly condemns the misplaced demands of certain organisations, as the same is not in the best interest of consumers or asset owners.

“We are aware of the recommendations made by FHRAI, and believe that the same is misguided and misplaced, and based on incorrect allegations made by small groups of people (not necessarily by franchisees and lessors associated with OYO Hotels) with vested interests. Neither are these demands aligned with the sentiment of the larger group of asset owners franchised or leased their property with OYO Hotels. Them coming together and creating a collective public uproar to get their unreasonable and vested demands fulfilled is not in the best interest of the consumers or asset owners, said an OYO Spokesperson in a press release issued here.

“Today, OYO Hotels and Homes, a full-scale hotel chain like many others, operates over thousands of franchised and leased hotels in India and hosts millions of guests from around the world. We are privileged to partner with asset owners and independent hoteliers across the country and globally, to ensure a much higher occupancy leading to better financial returns on all of their hard-earned investments,” the spokesperson added.

Giving a clarity about the matter the Spokesperson said that as an example, certain bodies have incorrectly claimed that OYO charges high commission on which they would like to confirm that their franchise fees are not only in-line with the industry, but it also enables them to create and maintain a world-class distribution platform for their asset owners and invest heavily in the improvement of the asset related infrastructure.

“Also note, we have never charged over 25% franchise fees, and do not intend to in the future as well unless we invest a massive amount of capex in the property, in which case again, we operate within the realms of standard industry practices. We manage two star and three-star hotels that usually run on market-led RevPAR, similar to other branded hotel chains while maintaining what is ideal for customers and generates fair yields for our assets owners. Identical to other mid-market hotel chains, we operate our leased and franchised assets while following strict compliance with the contractual terms. Also note, OYO like all other branded hotel chains follows strict compliance procedures and is fully compliant as a franchisor or lessee operating in India. Lastly, we can deliver predictable and affordable tariffs to our

customers because we can reduce our cost of operations significantly when compared to traditional hotel companies, through the use of technology, superior talent and scale,” the spokesperson added.


“Having said that, we are actively engaging with the asset owners, franchisees and lessors associated with OYO Hotels, on a one-to-one basis to understand and address their concerns and work towards further strengthening our relationship with them,” the Spokesperson further mentioned.


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