Mumbai's Hyatt Regency Hotel closed due to fund crunch

The Hyatt Regency Hotel in Mumbai will remain closed till further orders because of fund crunch Further reservation of hotel services has been temporarily closed.

Mumbai's Hyatt Regency Hotel closed due to fund crunch

Highlights:

  • All Hyatt Hotels are open in India except Hyatt Mumbai.
  • The total number of Hyatt hotels in India is 30.
  • Hyatt of America works on a franchise and management contract model in India.

Global hospitality firm Hyatt Hotel Corporation has suspended operations at the Hyatt Regency Hotel in Mumbai until further orders. Sunjay Sharma, Vice President of Hyatt and it's Head in India, told PTI in response to a query in this regard, "Hyatt will continue to operate the hotel from Asian Hotels (West) Limited, a company that owns the Regency Mumbai. It has been decided to temporarily suspend all operations of Hyatt Regency Mumbai due to the non-receipt of required funds for this purpose.

He said the hotel would remain closed till further orders. Further reservation of hotel services has been temporarily closed. Sharma also said that we give the highest value to our guests. We are working with the hotel owners to resolve the situation.

Asian Hotels (West) has no money

In February, Sushil Kumar Gupta, chairman and MD, Asian Hotels (West), resigned from the company. Asian Hotels (West) incurred a loss of Rs 109 crore in the 9 months of the financial year 2020-21. 10 days ago Asian Hotels (West) informed stock exchanges that it could not repay Yes Bank loan and interest. The total outstanding borrowings on Asian Hotels (West) are Rs 263 crore. Hardeep Marwah, General Manager, Hyatt Regency Mumbai, has informed the hotel's on-roll employees that their salaries have not been paid as the owner has stopped investing.

400 rooms in the 5-star hotel

Hyatt Regency Hotel is located near Mumbai International Airport. This is 400 rooms 5-star property. The temporary shutdown of operations is the first indication of the existence of tension in the hospitality sector in Mumbai due to the second wave of Covid-19. Hyatt of America works on a franchise and management contract model in India. Under this, the Hyatt brand is rented out to hoteliers and their properties are managed for them. In return, the hotel owner pays a fee. Except for Hyatt Mumbai, all other Hyatt hotels are open in India. There are 30 Hyatt Hotels in India.