Japanese tech conglomerate SoftBank is sending off two senior executives to help COVID-19 hit Oyo Hotels in Japan. The budget hotel chain is one of the largest startups in its (SoftBank's) portfolio.
Oyo Japan, which is a joint venture between SoftBank's domestic telco unit (in Japan) and the Indian online hotel operator, is setting up a six-member management monitoring panel to set the virus-stricken business right in the country, sources told Bloomberg.
The executives on the committee are SoftBank Corp. Executive Vice-President Eric Gan and Lucio Di Ciaccio, an investor at SoftBank's Vision Fund, and a group of Oyo Japan officials including new Chief Executive Officer Ryoma Yamamoto.
Oyo has been among the worst-hit in SoftBank's global portfolio of sharing economy outfits. The hospitality chain business sliced off its regional presence in Japan by shutting offices in provincial centres at the end of June and is also mulling to downsize its Tokyo headquarters.
Oyo Japan has also amalgamated its apartment-rental units and hotel-booking in the country under new leadership. The steps taken by the company reflect its efforts to cut back internationally as it adjusts to a much smaller tourism industry in view of the COVID-19 outbreak.
The incipiency of the panel was announced at a townhall meeting on August 3, which was attended by SoftBank Corp. CEO Ken Miyauchi for the first time, sources told the news agency.
According to Japan's tourism agency, overseas visitors to the country totaled 2,600 in June, logging a 99.9 per cent decline from a year-ago period. Domestic tourism also lingered during a state of emergency that spanned April and May.
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