The Hyatt Regency in Mumbai has closed operations indefinitely from 7th June 2021 owing to non funding for salary payment or operational expenses by Asian Hotels (West) Ltd., the owner of Hyatt Regency Mumbai.
Situated at a 5 minute walk from Chhatrapati Shivaji International Airport and a 15-minute walk from the nearest metro stop, the iconic five star hotel, Hyatt Regency Mumbai has fallen prey to the financial strains caused by the ravages of Covid-19.
The 401 key, five-star property, has declared closure due to a lockdown-induced cash crunch faced by its owner, Asian Hotels (West) Ltd.
In a short statement released on Monday, the hotel General Manager Hardeep Marwah said the parent firm had not sent money for operations.
“This is to inform all the on-roll staff of the hotel that no funds are forthcoming from Asian Hotels (West) Ltd, the owner of Hyatt Regency Mumbai, to enable payment of salaries or to support the operations of the hotel,” Mr Marwah wrote.
“As a consequence, the decision has been taken to temporarily suspend all operations…with immediate effect. The hotel will remain closed until further notice.”
In February, Asian Hotels (West) chairman and MD Sushil Kumar Gupta had resigned from the company, which reported a loss of INR 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.
Sunjae Sharma, Vice President & Country Head – India for Hyatt, made the following statement, “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.
Future reservations through Hyatt booking channels will remain temporarily unavailable.
At Hyatt, our guests and colleagues are a top priority, and we are working closely with the hotel’s owner to resolve this situation.”
The closure is the first visible sign of stress among famous hotel chains in the country. Hyatt follows a management and franchise contract model in India, whereby it lends its brand name to hotel owners and manages their properties in return for a fee.