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Thursday, 10 January, 2019, 17 : 53 PM [IST]

OYO warns strict legal action against hotel owners who default on contractual agreements

In an official statement issued by OYO  in response to an article published by and, (OTA issue somewhat settled, Budget Hoteliers to turn the heat on OYO now), the hotel company has said that they will initiate “strict legal action” against “individuals” who default on contractual agreements or not accept the online bookings which hamper “customer experience”.  Dismissing the boycott threats as the handiwork of “small vested interest groups”, OYO reiterated that “no property franchised or leased to OYO” is part of the boycott call. 

“As for the boycott claims, this is a threat and we have not received any formal communication from any of our asset owners.  In this context, we would like to also reiterate that most of the boycott claims are being made by small vested interest groups with no property franchised or leased to OYO Hotels. As franchisors, we continue to engage with our franchise hotel owners on a one to one basis to resolve issues and in case, we don’t reach a mutually acceptable solution, part ways amicably. While we work towards addressing such issues, our primary focus is to ensure that the consumer at all times has access to affordable, reliable and good quality accommodations.”

“However, some such individuals have also been threatening to cancel agreements and not accept online bookings, which will be a default of the contractual arrangements and will lead to legal liabilities on these individuals as we cannot and will not let anyone hamper the customer experience. We will take strict legal action,” the statement says.

Claiming itself as “the largest chain of franchised and leased hotels”, OYO clarified that it doesn’t work on commissions as Booking portals do, but work on the basis of “mutually agreed franchise fees or fixed lease cost.” 

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