Lack of cash flows force the Hyatt property to shut down until further notice
Hyatt Regency in Mumbai said on Monday that it is suspending all its operations. It shall remain shut until further notice. The luxury hotel belongs to the global hospitality brand – Hyatt Hotels Corporation. Asian Hotels (West) Limited owns the brand’s Mumbai property. And it has failed to make timely payments to run operations and pay salaries.
Sanjae Sharma, in a statement 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.” Sanjae is the Vice President and Country Head for Hyatt India.
The Covid affected hotel sector
As covid hit the world in March 2020, it shook the world in a way unknown to mankind. Many parts of the globe slipped into partial and complete lockdown. And, that has had its effect on human lives, economic growth, and business expansions. The hotel industry in India, is one such business that has been hit hard by the pandemic. Low demand and no future bookings drastically affected the industry. Additionally, tagging the hotels as quarantine centers for international travelers returning to India further added fuel to the fire.
Although, rebound was expected sooner, the second wave has made it difficult to project when life will go back to what we knew it to be. The Indian hotel sector is adopting new strategies to adjust to the new normal. It is also preparing for future crises.
Luxury brand Hyatt Regency, Mumbai suspending operations for a while comes as a shocker. However, with the states easing lockdown norms, covid cases dropping and vaccination drives in full motion, there is a ray of hope for the hotel industry. The industry is proactively taking precautionary measures to content the virus and mitigate its impact comes as a silver lining.