Budget hotel brand OYO has gone on the offensive amid a growing revolt by hotel partners in India.
OYO says it will not hesitate to start legal action for breach of contract against any hotel as two trade groups threaten a boycott of the brand.
The Federation of Hotels and Restaurant Association of India has been mobilising support for a boycott of OYO and more recently, a new trade association called the Hotel Association Confederation of India has voiced its protests.
Both groups allege it is OYO who is guilty of breach of contract with hidden charges being levied to hotels and allegations of payments being withheld if hoteliers challenge arbitrary changes made to contracts.
Some hoteliers allege that OYO charges 40% fees which the company denies.
While OYO plans to discuss hotel grievances on a one-to-one basis, the trade groups want to leverage their scale to negotiate better business terms for all.
They are threatening a nationwide protest.
They also claim OYO is hoarding illegal and unlicensed apartments as part of its homes division which is costing budget hotels business.
Claims of deep discounting have also been denied by OYO, stating that it employs a dynamic pricing model.
