After India, Oyo faces backlash from American hotel owners, says report

India's Oyo Hotels and Homes, which is facing complaints from a growing number of Indian hotel operators that have partnered with it over being blindsided by fee increases, now confronts a similar backlash in the US.

Several hotel owners in the US, where the company is looking to expand aggressively, have complained to travel intelligence platform Skift that the Oyo-mandated property management system frequently didn’t work or has poor functionality. The glitches hobble the ability of properties to set room rates or change and handle reservations, resulting in overbookings and poor customer service, according to Skift.

The Skift report says that handing over all revenue management powers to Oyo, hotel operators in the US were forced to cope with the company reducing drastically their room rates to “such an extent that they sometimes triggered an influx of drug users and prostitutes”. Other problems cited in the Skift report: alleged missed payments from Oyo, a lack of cash flow for property owners, and unresponsiveness in dealing with technical or customer service issues were likewise high on the complaint list.