Battered by Covid-19, Oyo terminates lease contracts for two Gurgaon offices

NEW DELHI/ BENGALURU: Oyo Hotels & Homes has terminated leases at two of its flagship corporate offices in Gurugram and is renegotiating the lease on a third, sources told ET, as the cash-strapped hospitality chain — battered by low occupancies due to the Covid-19 pandemic – moves to save on real estate costs.

The SoftBank-backed company has vacated its offices at Spaze Palazo and in Udyog Vihar, invoking the ‘force majeure’ clause, the sources said. Force majeure is enforced by companies during unforeseen events or in times of natural calamities.

Udyog Vihar had served as the headquarters of the Ritesh Agarwal-backed company for long. Oyo is also negotiating to terminate the lease on a third property, Capital Cyberscape, in which it occupied 150,000 square feet (sq ft).