Oyo halts payout

Hospitality firm Oyo said it was suspending payment of monthly benchmark revenue to its hotel partners as it is finding it impossible to discharge its obligations under the master service agreement because of the Covid-19 pandemic.

“In light of this pandemic and various restrictions issued by government authorities, your hotel’s revenue has been significantly and adversely impacted and it is unlikely to improve in the next few months,” Oyo said in a letter to hotel owners.

Oyo’s performance and obligation in relation to the benchmark revenue under the agreement has become extremely onerous and commercially impracticable, it added.