OYO China fires 25 employees for misconduct

OYO Jiudian, the Chinese subsidiary of OYO Hotels & Homes, has fired 25 employees and issued warnings to over 100 for instances of misconduct and unethical practices. The company said it has formed an integrity committee to weed out such cases.

In its statement, the company said, “OYO China intends to lead by example and hence took this bold initiative to set up this integrity committee. While this may seem harsh and unpopular and has already elicited some reactions, the best decisions are the hardest ones,” said Sam Shih, chief operating officer at Oyo China.

The hospitality company has a valuation of USD 5 billion.

OYO did not disclose the offences committed by the employees, except to state that the majority of the offences involved sums of RMB 10, Economic Times reported. The newly-constituted integrity committee represents select senior leadership members and third-party representatives, according to the press statement.

OYO also said it has delisted two hotels in the last two months, subject to fulfillment of quality standards and other customer experience checks, as part of its quality assurance program.

In March this year, Oyo acquired its competitor in China, Islands Hotel. This paves the way for Oyo to expand its presence in Beijing and Shanghai, where it hasn’t stepped in yet. In a span of 16 months, Oyo has procured 310,000 rooms in 292 Chinese cities, and according to media reports it has more rooms in China than it has in India. OYO claims to be the second-largest hotel chain in China.

This month US-based multinational hospitality chain Airbnb invested nearly USD 200 million in Oyo as part of the Indian startup’s Series E funding round. The deal will allow Oyos 10,000 villas and homes in India, Dubai and other markets to be listed on the Airbnb platform, expanding Oyo’s international reach and strengthening Airbnb’s presence in Asia. For Airbnb, listing OYO’s rooms under management will boost its inventory in a market where it is yet to make a big impact.