Worldwide: OYO Homes and Hotels has announced the establishment of a $200,000 fund for its South East Asian partners impacted by the COVID-19 strain.
This follows the company’s earlier commitment to a RMB 1 Million fund, dedicated to helping operators in China, its second largest market.
Both the CEO, Dr. Mandar Vaidya, and many other South East Asian executives have pledged to donate a portion of their salaries for the month to helping cover lost operating costs.
He said in a statement: “The hospitality industry has been impacted and we are also concerned with the impact COVID-19 has on our partners as they come to grips with the current situation.
“OYO stands in solidarity with all OYOprenuers and our partners in the region. Our effort reflects the organisation’s culture and values, which we hope, would spur others in the region to do their part during this challenging and uncertain time,” Vaidya added.
With news that COVID 19 has expanded to South Korea and is spreading aggressively in Italy, many hospitality companies have been hit financially. Trip.com and up to 30 other groups have applied for significant loans in order to weather the storm.
Chinese banks lowered their benchmark lending rates last week in response to the virus’ spread, hoping to help businesses going forward.
News of the spread has already hit OYO quite hard, with bookings dropping in China due to the virus. The group has already committed to halting corporate travel into the country as a result, committed to health monitoring, and have exempted commissions for affected staff.
The timing does not help the group either, as a recent financial report revealed a major jump in the company’s losses.