An arbitral tribunal ruled in favour of Zostel Hospitality Pvt. Ltd, which owns Zostel Hostels and ZO Rooms, in a legal battle against Oravel Stays Pvt. Ltd, the parent of Oyo Rooms, which may lead to shareholders of ZO Rooms to now own 7% in Oyo.
The term sheet executed between the two parties in 2015 promised ZO Rooms’ shareholders 7% of hospitality unicorn Oyo. The arbitral tribunal, in a ruling by former Chief Justice of India A.M. Ahmadi on 6 March, ordered the document to be binding.