Oyo ventured into Nepal quite recently. From my viewpoint I see rooms often can be charged by the hour on some of their signage, not just daily rates. That's the type of visitor they are looking to attract.
I wish we had something like that in Wales. Sometimes after a day in the hills I’d like a hotel room for an hour just to have a shower and change into dry clothes before driving back down the A470. Fellow Welshmen may mock me now, I’ve grown soft from spending too much time in England.
Hotels (alas mostly the business oriented ones) absolutely rent day rooms at reasonable prices if they have stock available.
Just ask around.
Hotel management needs time to send cleaners to change the sheets and such after all. If booking is on an hour-by-hour basis like say a hotel meeting room, it isn't feasible to clean the place in between every booking.
Odds are that the hourly-rate rooms would be on a different floor than the daily-rate floors for logistical reasons, which makes it even harder for me to see any problem with this.
There’s significant a cultural difference here too, in the areas where Oyo primarily operates young couples need these rooms just as much as prostitutes.
What you write may be true for Asia, but if you’re from the US, it makes sense to be wary of hotels offering hourly prices since it attracts a clientele that reduces the quality of life at the hotel. It’s not about being a prude, it’s the fact that hotels frequented by pimps, hookers, and drug dealers offer a less desireable experience.
After having a neighbor who thought it's a good idea to turn her rented appartment into an illegal hotel I'd say exactly the same thing, regarding quality of life, about Airbnb.