The India-based company and a significant investment from SoftBank Group Corp.`s $100 billion technology fund have grown rapidly by offering independent hotel owners the unusual benefit of guaranteed income when their hotels joined the Oyo chain. Now, Oyo is ending the practice of granting these guarantees around the world and instead executing new contracts for its hoteliers without them, Chief Executive Ritesh Agarwal told the Wall Street Journal. The new contracts also increase fees charged to hotels, according to some hotels and former Oyo employees. Agarwal said the company is taking this step primarily because the guarantees have been used to convince hotels that Oyo could increase occupancy and revenue. However, he said Oyo had some issues with warranties, especially in its largest market in China, and about 15 percent of Oyo`s rooms still had them at the beginning of the year. Many hotels signed up, attracted by the warranties – sometimes at more than 100 percent of the previous year`s revenue, according to former Oyo employees. However, some hotels did not produce enough bookings, so Oyo was on the hook to reach these revenue levels, which led to disputes with some hotel owners. You have already applied for OWN YOUR OWN HOTELS-Earn Upto15 Lakhs pm with OYO ROOMS. OYOHTM is the registered trademark of DLM TECHNOLOGIES INC. Our company offers our customers the following business models for hospitality Trial 15 days + includes DocuBay and TimesPrime membership worth ?1499 &?999 and. OYOH, helps in the smooth transformation of your building or rented commercial spaces into OYO ROOMS.
Access exclusive Economic Times stories, editorials and expert opinions. Current computer systems are included in the franchise Yes How long is the deductible? 5-Number of rich Sharp Insight years, incoming stories from more than 20 sectors Choose your reason below and click the Report button. This will draw the attention of our moderators to the implementation of actions Oyo Hotels & Homes, which has become the second largest hotel chain in the world by number of rooms, is an important instrument that has favored its rise. . Our business success for this model is Rs 2lakh. OWN YOUR OWN HOTELS, is the commercial partner of OYO Rooms for existing hotels and commercial connections of buildings. . Exclusive territorial rights over a single franchisor Yes….