OYO says no specific relief for Zostel in arbitration as latter claims victory

New Delhi, March 7 : In a stretched battle, hospitality major OYO Hotels & Homes and hostel chain Zostel are at logger heads over an arbitration award as OYO said that the Arbitration Tribunal adjudicating the dispute between two entities has granted no specific relief to Zostel in terms of receiving ownership in the hospitality major.
In a blog on Sunday evening, OYO said: “We are stating that the Arbitration Tribunal has granted no specific relief to Zostel in terms of receiving ownership in OYO.” However, Zostel in a statement claimed victory in the matter.
“OYO acted in breach of its binding agreement after its acquisition of rival Zostel Hospitality, ruled the Arbitral Tribunal, directing OYO to sign the documents and issue the shareholding as committed in the Term Sheet,” it said.
The term sheet executed between the two parties on November 26, 2015, promised ZO Rooms’ shareholders 7 per cent of OYO.
The arbitrations panel delivered the ruling on Saturday.