Citing economic slowdown and revenue impact from the Covid-19 pandemic, hospitality unicorn OYO has decided to suspend the payments of hotel partners. The SoftBank-backed startup is now invoking ‘force majeure’ clauses from the agreement between OYO and property owners.
According to an ET report, OYO has sent a letter, dated March 28, to hotel partners describing the situation and the impact. OYO stated that as revenues of hotels have dwindled and are unlikely to improve in the next few months, it has decided to exercise ‘force majeure’ rights and suspend payments of the monthly benchmark revenue.
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