Oyo suspends payments to hotels

SoftBank-backed Oyo has written to hotel owners invoking the ‘force majeure’ clause in their agreements, with the Covid-19 pandemic severely impacting business at the hotels. ET has seen a copy of the letter dated March 28.

Oyo said in the letter that since hotel revenues have dwindled and are unlikely to improve in the next few months, it was constrained to exercise ‘force majeure’ rights in suspending payments of the monthly benchmark revenue or any other amounts payable to them.

Source: Economic Times