OYO sets up integrity committee in China; lays off employees, delist hotels

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Updated: April 17, 2019 5:00:56 PM

The committee, having representation from select senior leaders and third-party representatives, will focus on taking important decisions with respect to ways of working for employees and other stakeholders such as property or asset owners, unethical practices or wrongdoings etc.

The launch comes amid laying off more than 25 employees in China for misconduct.

In an effort to ensure transparency and corporate governance in running day-to-day operations of the business, hotel and home chain OYO Hotels & Homes today announced setting up of an integrity committee in China where it is the second largest player in its category. The committee, having representation from select senior leaders and third-party representatives, will focus on taking important decisions with respect to ways of working for employees and other stakeholders such as property or asset owners, unethical practices or wrongdoings etc.

The launch comes amid laying off more than 25 employees in China for misconduct even as over 110 employees have been issued warning, OYO said in a statement.

While the fine for most of the offences is just RMB 10 (~Rs 104) but the move by OYO is guided by its focus on compliance across levels in its China business — OYO Jiudian.

OYO also confirmed that it has delisted two hotels in the last two months, subject to fulfilment of quality standards and other customer experience checks as part of its quality assurance program for more than 8000 hotels that are managed by the company in China.

“Whether its global corporations like Pepsico or respected Chinese organizations like JD.com closer home, acting swiftly and strongly against unethical practices have helped them set world-class benchmarks while maintaining business growth and performance. OYO China intends to lead by example and hence took this bold initiative to set up this integrity committee,” said Sam Shih, COO, OYO China.

For 2019, Shih said expanding OYO’s chain in the country while ensuring service consistency will be his key priorities for which the team continuously evaluates hotels across more than 290 cities. However, “any building which does not maintain the standards we have set for us and the industry is churned out of our system.,” he said.

OYO claimed that on an average every building that becomes a part of OYO’s chain witnesses increased occupancy from 25% to 65% in a few months time.

“We are in line to be the largest hotel chain, with 600X growth in daily stayed nights since March 2018. At this stage in our growth, it is important for us to set the highest standards of integrity and corporate governance to ensure we are not just growing fast but also moving in the right direction,” said Shih.

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