Skip to content

Search

Latest Stories

OYO Hotels to lay off or furlough some U.S. employees

In keeping with a promise to Indian government, no layoffs will occur there until after its shutdown finishes

OYO HOTELS AND Homes plans to layoff and furlough “a certain number of employees” in the U.S. in response to the economic shutdown resulting from the COVID-19 pandemic. However, it will not make any cuts to its staff in India until that country’s lockdown is over, keeping a promise it made to the Indian government.

OYO founder and group CEO Ritesh Agarwal announced the furloughs in a video message and letter to employees and all other stakeholders on April 8. He said the company’s revenue has dropped 50 to 60 percent.


“The economic impact brought by Coronavirus is dramatic and has impacted every industry I can imagine. However, I cannot imagine any other industry that is worse affected from our industries of travel, tourism and hospitality,” Agarwal said.

The pandemic comes at a “unique time” for the company, he said. In January, OYO underwent a large restructuring, but Agarwal said they intended to do “no or negligible layoffs” or furlough employees as part of that restructuring.

“But at the same time, it is important for me and our leadership team to ensure that we make the right decisions required for the long-term success as well as what is right for the long-term cash runway for the company,” Agarwal said. “Given that, a significant number of OYOpreneurs across the world are being placed on temporary leaves or furloughs of a minimum of 60 to 90 days and the details of these will be made available from human resources teams of your respective countries.”

Agarwal previously agreed to forego his entire salary for the rest of 2020. The company also created the OYO Welfare Fund to help employees at OYO properties and partner companies affected by the COVID-19 pandemic.

Money from the India-based company’s Welfare Fund, to which OYO owners and employees donate, also will go to help communities surrounding OYO hotels. The company will donate $3.5 million to the fight against the coronavirus that causes COVID-19.

The company announced on March 24 that all its hotels will offer free stays to medical workers who are traveling to fight the virus.

More for you

Choice Hotels New Breakfast Offerings for Country Inn & Suites

Choice updates breakfast at Comfort, Country Inn

Choice Hotels Elevates Guest Experience with Breakfast Revamp at Country Inn

CHOICE HOTELS INTERNATIONAL relaunched its breakfast program at Comfort and Country Inn & Suites by Radisson to attract guests and distinguish its upper-midscale brands. It is piloting new items, including a breakfast bowl at select Comfort hotels and a biscuit sandwich at some Country Inn & Suites.

The company is working with Florida's Natural and General Mills to source juice and cereal to supplement its breakfast menu, Choice said in a statement.

Keep ReadingShow less
Choice kicks off 69th Annual Convention in Vegas
Photo credit: Choice Hotels International

Choice holds 69th Annual Convention in Vegas

CHOICE HOTELS INTERNATIONAL began its 69th Annual Convention, themed “Powering the Future,” at Mandalay Bay in Las Vegas on April 29. The three-day event opened with a keynote by Choice President and CEO Patrick Pacious before thousands of owners, operators and industry partners from around the world.

The event includes 100 educational sessions, a trade show for owners to connect with vendors, and brand sessions where Choice leaders outline focus areas and company investments to drive revenue and reduce costs, Choice said in a statement.

Keep ReadingShow less