SoftBank-backed Oyo suffers major shortfall in ambitious Japan push

Ensuing labor revolt raises WeWork-style concerns about loss-making Indian startup

An Oyo hotel in Tokyo: The Indian startup is facing headwinds in the Japanese market. (Photo by Yuki Kohara)

ERI SUGIURA and WATARU SUZUKI, Nikkei staff writers

October 25, 2019 19:52 JST

TOKYO -- A massive shortfall in the aggressive Japanese expansion plans of Oyo, the SoftBank Group-backed Indian hotel group, has snowballed into a nasty labor dispute, the Nikkei Asian Review has learned.

Oyo Hotels & Homes, which seeks to become the largest hotel chain in the world, entered Japan in April. It laid out ambitious plans to become the country's largest hotel operator with a target of signing up 75,000 rooms under its brand by March 2020, according to sources.