The waves of the pandemic completely rocked the travel and tourism industry. While many hotels and restaurants were hoping for a road to recovery in 2021, the second gave them an even harder blow. It is therefore, not surprising to learn that many hotels and restaurants are shutting down their operations. One of the biggest names that have suffered the most losses is Hyatt Regency Mumbai. The five-star hotel has decided to shut down until further notice as the hotel owner is not able to support the operations.
Hyatt Regency Is Unable To Sustain Its Operations
Sunjae Sharma, Vice President, and Country Head – India, Hyatt confirmed this news. He said, “As a result of no funds forthcoming from Asian Hotels (West) Ltd, the owner of Hyatt Regency Mumbai, to sustain the operations of the hotel, a decision has been taken to temporarily suspend all operations for Hyatt Regency Mumbai. The hotel will remain closed until further notice.”
Also read: RBI Creates Liquidity Window Of ₹15,000 Crore To Help Hotels, Tourism & Restaurants
The RBI announced the creation of a special liquidity window of INR 15,000 crore to provide liquidity support to the contact-intensive sectors most affected by the pandemic….
Read what hospitality industry stakeholders have to say in this article on – https://t.co/SK5ltyks7n— AHAR – Indian Hotels and Restaurants Association (@AHARMumbai) June 7, 2021
The Hotel Is Not Accepting Any Reservations
The popular five-star property located near Sahar airport will not accept future reservations. All booking channels will be temporarily unavailable. However, the hotel assured that it is working closely to resolve its situation and resume its operations soon. COVID-19 Curbs Will Wipe Out 90% Restaurants In Maharashtra: 4 Ways The Government Can Help The Industry Recover.
The Hotel Owners Were Unable To Pay The Staff
On June 7, 2021, Hyatt Regency Mumbai issued a notice informing all hotel staff that no funds are forthcoming from Asian Hotels (West) Ltd, and the owner of Hyatt Regency Mumbai. They were, therefore, unable to pay the salaries of the hotel staff and support the operations. The decision was taken given the financial crisis that the hotel is suffering.
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Yes Bank Blocked Account & Held Funds
The owner Asian Hotels claimed that Yes Bank barred it from making payments from an escrow account following a loan default. The company defaulted on a loan payment to Yes Bank due to COVID-19 impact. Since then, Yes Bank has held all funds.
Many other luxury hotels around the country have started home delivery services to stay afloat. These luxury hotels are offering, healthy, feel-good foods to make work from home bearable. The hospitality industry is one of the worst-effected sectors. The guidelines to close dining in restaurants have been devastating for the whole F&B industry. Right now, the restaurant owners are pleading with the government to acknowledge their loss and prevent the hospitality industry from collapsing.