Oyo Hotels has reportedly faced difficulties regarding its global expansion strategy, following reported monthly losses of $15m throughout the pandemic.
The group has previously set targets on becoming the largest hotel chain in the world, entering the UK in 2018 and expanding into Europe with the $415m (£297m) acquisition of Axel Springer’s Leisure brand.
At its peak, the group claimed to operate over 1.2m rooms in 80 countries, while being valued at $10bn (£7.2bn) by its backer SoftBank.
However, according to the Financial Times, after experiencing monthly losses of $15m (£10.7m) Oyo’s value has reportedly fallen to $3bn (£2.1bn).
As a result, Ritesh Argawal, founder and CEO at the company, told the paper that “growth will be moderate in comparison to what it was earlier”.
He added that investment in the UK, China, and the US will now be “very limited,” as the group will unlikely become “market leading” throughout the regions.
Moreover, the Financial Times reported that the firm has also seen a decline to its 30,000-strong global workforce of two-thirds.
In the UK, the FT said it has reduced staff numbers from 550 to less than 100.
Oyo said in response, via the Financial Times: “The welfare of our employees and our work culture is of utmost importance to us and we hold these to the highest standards.”