Softbank-backed Oyo Hotels & Homes is extending furloughs for some Indian employees by six months, it said on Friday, as an unabated rise in domestic coronavirus cases curbs travel and hits hotel revenues.
Oyo, once among the world's largest hotel chains by room count, said a recovery in business was taking longer than expected following India's nationwide coronavirus lockdown that was largely lifted in June. The country is among the startup's biggest markets."The situation remains uncertain ... we don't quite know when our occupancies and revenues will recover to pre-COVID levels," Rohit Kapoor, Oyo Chief Executive Officer for India & South Asia, said in a blog post.
Oyo in April cut salaries and furloughed some Indian employees until August, while also furloughing thousands in its global markets. It said on Friday Indian employees affected by the furloughs could choose a voluntary separation or remain on leave with limited benefits until end-February 2021.