Softbank-Backed Oyo To Offload More Loss-Making Hotels Amid Pandemic - Sources
NEW DELHI/BENGALURU (Reuters) - India's Oyo Hotels and Homes, backed by SoftBank Group (9984.T), plans to offload more properties around the world, three sources familiar with the matter said, as the coronavirus pandemic prompts it to speed up a retreat from a rapid global expansion.
The hospitality sector has been one of the worst affected by the coronavirus outbreak, with global and domestic travel coming to a near-halt.
While Oyo does not plan to completely exit any market, it will either terminate or not renew contracts with loss-making hotels, two of the sources said.
A fourth source aware of the plans added that Oyo had already ditched a number of loss-making properties as part of a broader restructuring that began last year.
The source also said the company may furlough additional staff in countries where travel curbs to prevent the spread of the virus persist for several months, making it difficult for hotels to operate.
