Oyo layoffs have hotel partners worried

Several existing hotel partners of Oyo expressed concerns over the job cuts at the SoftBank-backed company and said they had received no communication so far about reduction in client-facing roles.

Hoteliers ET spoke said they were unable to contact company representatives who were doing business with them. But Oyo said it had maintained a constant flow of communication with its asset owners in all the regions where the restructuring exercise was ongoing.. Hotel owners said they had an inkling that something was amiss, as the company’s staff had been changing in quick succession, which had also been a major problem area for them.

“We are hearing from media reports that a lot of employees at the company have been asked to go, but they have not communicated anything to us. For the past twothree days I’m trying to contact the business development people but they are not picking up our phones,” said Mohammad Ansar, an Oyo partner who owns Hotel Amber Palace on Duncan Road in Mumbai. “Oyo never behaves like a partner. We have put in so much investments and they treat us like an employee rather than a partner,” he alleged.

An Oyo spokesperson said multiple teams on the ground had been engaging with the company’s hotel partners and addressing queries, if any. “There are multiple channels of communication that enable the asset owners to directly reach out to us and vice versa, including the CO-OYO app, OYO OS (and) partner support helpline … We also have dedicated portfolio managers who are equipped with all tools and technology to address any query or issue,” the spokesperson added.

Harish, who has two hotels under Oyo in Bengaluru, said he had heard that the company was changing its structure but it did not communicate this to him. The hotelier, who has given only one name, previously had arrangements for 14 hotels under Oyo. “They should inform us. They update us on new launches, expansion to other countries but there is no news from the company on this. This is also important for us,” he added.

“I tried contacting their employees but they are not picking up,” said Vinay Shetty, who owns Sambram Inn in Pune. “I want to leave (the pact with Oyo) but they will put a sold-out tag on my property as they have been doing with other people, and my regular customers won’t come,” he said, while accusing the company of not being transparent in its dealing with the hotel partners. “They need to communicate. The staff keeps changing every other week and every staff member has been demanding a different amount from us and then they disappear.” ET had reported previously that client-facing divisions like sales, supply and operations would account for a chunk of the layoffs at Oyo. On Thursday, ET reported that job losses at Oyo, across multiple roles and business functions, were likely to intensify.

An Oyo spokesperson had denied there were further retrenchments in the offing. In 2020, the company has a “razor-sharp” focus on building and strengthening its relationship with its asset partners, where it will prioritise profitable buildings and avoid growth that dilutes margins, the Oyo spokesperson said. “We have recently launched our first partner-support centre in Gurgaon and you will see more of these facilities in different cities in the coming months. All this will help ensure we build a mutually profitable and sustainable business.” Hotel owner Manish Tomar, an Oyo partner from Gurgaon, said he heard about the layoffs through social media. “We have existing issues with the company on payments.

We have to wait and watch,” he said. “If the changes are for the better, we would like to continue. After all, we have to do business. They have to come up with good proposals.” Oyo has denied charges of holding back payments, excessive commissions and other accusations by partners, and said such allegations present a lopsided evaluation of a situation.

Source:- https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/oyo-layoffs-have-hotel-partners-worried/articleshow/73348921.cms