India: Zostel Hospitality claims victory in legal tussle with Oyo

Visual from OYO website

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.

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