Against the backdrop of the distressing impact COVID-19 is having on the entire hospitality industry worldwide with occupancy rates plunging, OYO has taken a series of measures to support asset owners in different regions of the country.
Said Sharad Saxena, Chief Supply Officer, Franchise Business, OYO India & South Asia, “We are taking several measures to assist and support our asset owners across the country. Despite the significant economic pressures on the industry, OYO is committed to doing what it can to help its partners during these testing times. Through these fiscal relief and support measures as well as OYO Sambandh, we are maintaining a constant line of communication with our partners. We are thankful for the support and understanding of thousands of asset owners and hope to strengthen our relationship in the coming time.”
Some of these measures include:
1. Lessening the burden of payments due and accrued, multiple charges have been waived for the month of March onwards, including value-added service charges, Wizard membership accruals etc. Under these initiatives, a total of INR 24 crore discounts has already been offered to over 3000 OYO partners and continues to impact several others.
2. At the same time, thousands of partners who wanted to become a part of OYO Secure, a financial product similar to an online wallet for simplified deal benefits and real-time visibility of their earnings, were offered support in terms of reduced joining amounts as well as a complimentary 30% top-up from OYO for every recharge to the asset owner’s OYO Secure wallet.
3. Partners whose financials are most affected by COVID-19 have been given steep take rate discounts upto almost 100% waivers to support them throughout this tough time.
4. March onwards, OYO, irrespective of past dues at the property, continues to make weekly payments and reconciliation settlements. This is helping thousands of partners immensely with managing working capital requirements.
5. OYO has also partnered with multiple lending institutions in India ranging from NBFCs, private sector banks, new-age fintech companies to identify and facilitate adequate financing for hotel transformation, up-gradation, Capex and working capital requirements. Over the past few months, the disbursals under these renovation and up-gradation advances have crossed over INR 160 Cr+. The company’s partnership with these institutions helps fast track the loan process while reducing processing time as well as documentation delays.
6. Starting April, OYO has also launched a retention linked discount for certain sections of its asset owners. The discounts range from 50% on base fees for April and May and an extended discount of 20-25% across June-December.
7. Certain services for a large section of eligible asset owners are also being provided free of charge for the said period. These include Free Tariff Manager Value Added ServicesThe company is putting its efforts behind ensuring that in these unprecedented times for the hospitality industry, OYO’s asset owners receive the necessary support and assistance at every step.