Highgate Hotels, the operator of Oyo Las Vegas, has been removed by Oyo Hotels corporate. This change follows a significant cybersecurity incident at the Las Vegas property. The sudden shift has caused disruptions to hotel booking systems.
Key Takeaways
- Highgate Hotels no longer manages Oyo Las Vegas.
- The change follows a cybersecurity breach affecting 4,700 individuals.
- Hotel booking systems, including third-party sites, experienced outages.
- Oyo corporate will now directly manage the Las Vegas property.
Management Change at Oyo Las Vegas
Oyo Hotels & Homes USA, based in India, has ended its management contract with Highgate Hotels for the Oyo Las Vegas property. This decision became effective suddenly, leading to operational challenges.
Highgate Hotels had been responsible for managing the hotel operations since 2019. The casino at Oyo Las Vegas, operated by Paragon Gaming, remains unaffected by this change and continues its operations.
Fast Fact
The Oyo Las Vegas hotel has 657 rooms, making it a relatively small property compared to other major Las Vegas resorts.
Cybersecurity Incident Details
The primary reason for Highgate's removal is linked to a significant cybersecurity incident at Oyo Las Vegas. According to information from the state of Maine attorney general’s office, this breach was discovered on September 18. Personal information belonging to approximately 4,700 individuals may have been compromised during this incident.
The breach involved sensitive data, raising concerns about data security practices. Such incidents can have serious implications for guests whose personal information is affected.
"According to the state of Maine attorney general’s office, the breach was discovered on Sept. 18 and personal information from 4,700 individuals may have leaked out."
Impact on Booking Systems
The immediate removal of Highgate Hotels caused severe disruptions to the hotel's booking infrastructure. Highgate's systems were essential for managing room reservations.
As a result, the hotel's booking engine went offline. This included the ability to book rooms directly through the hotel and via third-party travel websites. This situation created difficulties for travelers trying to make or confirm reservations.
Prior Performance Concerns and Contract Termination
Court filings suggest that Highgate's performance was already a concern for Oyo Hotels before the cybersecurity incident. Oyo described Highgate's performance as "consistently poor."
Following the breach, Oyo found Highgate's IT practices to be "seriously deficient." This led Oyo to notify Highgate on August 1 that it would no longer operate the Las Vegas property or a Times Square hotel in New York City. This notification date, August 1, is six weeks before the security breach was officially discovered on September 18.
The discrepancy between the notification date and the breach discovery date has not been publicly explained. This timeline suggests that underlying issues were present for some time.
Hotel's History
The property now known as Oyo Las Vegas has a long history of different names and operators:
- 1973-1975: Howard Johnson Hotel
- 1975-1976: Paradise
- 1977-1978: 20th Century
- 1978-1985: Treasury
- 1985: Pacifica
- 1985-1989: Polynesian
- 1989-2006: Hotel San Remo
- 2006-2019: Hooters Casino Hotel
- 2019-Present: Oyo
The Hooters restaurant at the Oyo Las Vegas recently closed as well, marking another change for the property.
New Operational Structure
Oyo Hotels corporate will now take over the direct management of the Oyo Las Vegas property. This direct operation aims to stabilize hotel services and address the issues that led to Highgate's departure.
Managing a hotel directly, especially after an operator is removed overnight, presents unique challenges. However, the relatively small size of the Oyo Las Vegas hotel, with its 657 rooms, may simplify the transition process.
Ongoing Silence from Parties Involved
As of now, neither Oyo Hotels nor Highgate Hotels have issued official statements regarding the management change or the cybersecurity incident. This lack of public comment leaves many questions unanswered for guests and the public.
The situation highlights the importance of robust cybersecurity measures and clear communication in the hospitality industry. Travelers rely on secure booking systems and transparent information from hotel operators.
Future Outlook for Oyo Las Vegas
The immediate focus for Oyo Hotels will be to restore full booking functionality and ensure the security of guest data. The casino operations, managed by Paragon Gaming, are expected to continue without interruption.
The sudden nature of Highgate's departure is uncommon in the hospitality sector. This event underscores the serious consequences of cybersecurity vulnerabilities and performance issues in hotel management contracts.
