The ongoing COVID-19 pandemic has seen numerous hospitality business leaders reduce or waive their salaries in an effort to emphasise the threat to hospitality businesses posed by the pandemic. Ritesh Agarwal, Founder & Group CEO of ‘start up’ OYO Hotels & Homes is the latest, announcing he will forego 100% of his salary for the rest of the year.
The company’s entire executive leadership team has taken a voluntary pay cut starting at 25%, with many opting for an additional uncapped amount, and some going up to 50% to enable building the runway for the company. This would be effective April 2020 and the entire company is standing together to tide over these times.
It has been a matter of pride for OYO Hotels & Homes that it has retained each and every single leader in the CXO group in the history of the company, and in a difficult time like this, the executive leadership has come together as one strong entity as true partners of the company.
Commenting on the development Agarwal said: “The current situation the world over is deeply concerning to each and every one of us.
“OYO is doing everything to support the world with its limited resources in this pandemic from making isolation centres to finding a safe place for first responders. Given the current business situation, which is unprecedented for our industry globally, I am foregoing 100% of my salary for the rest of the year.
“I am grateful to my leadership team, that have also taken pay cuts and support the company during these tough times. We at OYO stand committed towards the fight against COVID-19 and will try to do everything in our control to reach out and help people while also ensuring long term success of the company, and our ability to continue delivering on our mission to bring better living spaces for all, at the right prices, globally. ”
We suspect this pattern will continue as the ongoing impact from COVID-19 is felt throughout the hospitality business.
Less than a year ago we were reporting on the incredibly fast paced growth of OYO Hotels – OYO emerge as the world’s third largest hotel chain. Only a few months ago reports had changed direction significantly – OYO Hotels and its biggest investor under significant and mounting pressures. The roller coaster that is OYO Hotels doubtless has a few more twists and turns ahead.