window.addEventListener('DOMContentLoaded', function() {
Connect with us

Bussiness

Hyatt Regency closes ‘temporarily’ in Mumbai – Times of India

Published

on

photo

MUMBAI: The Hyatt Regency hotel near Mumbai international airport, a 400-room, five-star property, has declared temporary closure due to a lockdown-induced cash crunch faced by its owner Asian Hotels (West).
Since no funds were coming from the owner to sustain operations, it was decided to suspend operations till further notice, Hyatt Hotels India head Sunjae Sharma said. Future reservations for the luxury property through Hyatt’s booking channels will be temporarily unavailable, he added.
The closure is the first visible sign of stress among prominent chains in the hospitality sector in India’s financial capital.
US-based Hyatt follows a franchise and management contract model in India where it lends its brands to hotel owners and manages their properties for them in return for a fee. Hyatt maintained that the rest of the 30 properties in its India portfolio remain operational.
“While many hotels shut down during the first Covid wave, it was a decision based on low occupancy. They opened back up. This situation is not as much about the (Hyatt Regency Mumbai) hotel shutting down as it appears to be about the owner not paying salaries when keeping the hotel open for the recent past few weeks,” said a hospitality consultant.
Hyatt Regency Mumbai general manager Hardip Marwah informed the hotel’s ‘on-roll’ employees, via a memo, that it could not pay salaries or support operations as the owner has stopped putting money. Staff strength at the 401-key Hyatt Regency could not be ascertained as it had laid off employees following the impact on business from the pandemic.
Typically, full-service hotels like Hyatt Regency Mumbai have a staff-toroom ratio of 1.2:1.
Sharma said the chain is working with Asian Hotels (West) to resolve the situation. In February, Asian Hotels (West) chairman and MD Sushil Kumar Gupta had resigned from the company, which reported a loss of Rs 109 crore for the nine months of fiscal 2021. Ten days ago, Asian Hotels (West) informed stock exchanges that it had defaulted on loan and interest payments to Yes Bank. Total outstanding borrowings stood at Rs 263 crore.

close