Funding and restructuring offer made to Oyo Hotels & Homes
The chairman of IBC Group and Gallery Suites has contacted Oyo with a deal
IBC Group and Gallery Suites chairman, Khurran Shroff has reportedly reached out to the founder of Oyo Hotels & Homes with a plan for funding and restructuring.
Sister publication Arabian Business reported the news, saying the UAE-based tycoon proposed to take on employees the Indian hospitality company may otherwise let go. Shroff has also made an offer to buy out Oyo’s home division.
Shroff explained: “We will join hands with these thousands of deserving employees – offering them jobs with Gallery Suites in India and UAE.”
Arabian Business highlighted that Gallery Suites Vacation Rentals in Dubai had made a deal with Oyo Rooms in August 2019 to manage 10,000 holiday homes in India and the UAE.
Shroff continued that Oyo and his company hold a good relationship. He explained: “We (Gallery Suites) are restructuring the contract with Oyo to just have an OTA relationship because they have 40 million users on their app, so they are going to just provide us their demand of users.”
He elaborated: “Our intention is to find positives in the emerging circumstances, by issuing an open letter to hire their employees, and possibly an open letter to purchase Oyo’s home division.”
Oyo, a Softbank-backed company, last month revealed it was drastically pulling back on its expansion plans. It further explained it intends to cut approximately 15-20% of its 12,000-strong workforce.
Oyo previously revealed it intends to give “generous separation packages” to those let go, inclusive of compensation, extended medical cover, counselling and outplacement services.