Highgate Hotels Booted From Oyo Over “Security Incident,” Smidge of Chaos Ensues
As we were the first to report exclusively, the hotel operator of Oyo Las Vegas, Highgate Hotels, has been shown the door by Oyo Hotels corporate.
“Firsts” and “exclusives” are our version of “having a life,” so we’re damned well going to mention when we scoop everyone in town. You’ll live.
Highgate’s overnight expulsion from Oyo stems from Highgate’s handling of a “significant cybersecurity incident” at Oyo Las Vegas. If this is the first time you’re hearing about this incident, join the club. Las Vegas journalism sucks. Let’s dive into this glorious drama, shan’t we?
So, at Oyo, Highgate operates the hotel, Paragon Gaming operates the casino.
Highgate is out, but Paragon Gaming will continue to run Oyo’s casino, per our sources.
Oyo’s ousting of Highgate has brought with it some serious turmoil.
Highgate’s system was used for room bookings, for example. Pulling the plug on Highgate has resulted in the hotel’s booking engine going offline, including the ability to book rooms on third-party travel sites.
Or as it’s known in the hospitality industry, “OMFG!”
Is it common for a hotel operator to be fired and removed overnight? Absolutely not.
So, how did this mess come about?
It started in New York City, where so many horrible things do, including organized crime, crack cocaine and sarcasm.
A Crain’s story, tucked behind a paywall for your convenience, reports a squabble between Oyo and Highgate in relation to a Times Square hotel. Oyo terminated Highgate’s management contract over a problem in Las Vegas, the aforementioned “significant cybersecurity incident.”
From the Crain’s story: “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.”
Why didn’t anyone hear about this hack at Oyo? Because it’s Las Vegas. Casinos share what they’re required to share, and that’s it. Circle the wagons and hope nobody notices.
Adding to the drama: “Following the breach Highgate’s performance, already ‘consistently poor’ according to Oyo, took a turn for the worse. Oyo found Highgate’s IT practices ‘seriously deficient’ and on Aug. 1 notified the manager it would no longer operate the Las Vegas property or Times Square hotel, according to the court filing. Aug. 1 is six weeks before the security breach was apparently discovered. The cause of the discrepancy couldn’t be learned.”
Highgate has managed Oyo for India-based Oyo Hotels & Homes USA since 2019. Oyo was previously Hooters Casino Hotel.
Oyo has a long and shaky history. Here’s the rundown of its previous incarnations, per the Wikipedia: Howard Johnson Hotel (1973-1975), Paradise (1975-1976), 20th Century (1977-1978), Treasury (1978-1985), Pacifica (1985), Polynesian (1985-1989), Hotel San Remo (1989-2006), Hooters Casino Hotel (2006-2019), Oyo (2019 to present). Hooters restaurant recently closed at Oyo. There will be a quiz.
Oyo corporate taking over operations of Oyo Las Vegas should provide some interesting challenges.
On the bright side, it’s a relatively tiny hotel, with just 657 rooms. Due to the hotel’s small size, there isn’t all that much to operate.
We’re told that at the time the hotel’s booking system went offline, it was fully booked.
We look forward to hearing more about this kerfuffle once our local media gets its collective head out of its collective ass.
Neither Oyo nor Highgate have addressed or made any official statements about the unfolding brouhaha.
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