'Unable To Pay Salaries', Hyatt Regency In Mumbai Suspends Operations Due To Fund Crunch

The operations will remain suspended in absence of funds coming from Asian Hotels (West) Ltd, the owner of Hyatt Regency Mumbai, making the payment of salaries difficult or supporting the operations.

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Mumbai: The onslaught of Covid-19 pandemic has brought the hotel and travel industry to a standstill leaving behind several people jobless. Amid the second wave of pandemic, global hospitality firm Hyatt Hotels Corporation has suspended operations at Hyatt Regency hotel in Mumbai, and said the property will remain closed till further notice.

It has become difficult for the hotel to remain operational in tough economic conditions. Hyatt Regency is among the best known 5-star hotels in the financial capital to temporarily shut down the hotel indicating financial trouble and the inability of the property's authorities to pay salaries due to fund crunch.

"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," said Sunjae Sharma, Vice President and Country Head - India, Hyatt.

The hotel, which is closer to the Mumbai airport, is owned by Asian Hotels (West) Ltd, will remain closed until further notice, added Sharma while responding to news agency PTI. Other than Hyatt Regency Mumbai, Asia Hotels (West) also owns JW Marriott Hotel New Delhi Aerocity through subsidiary company Aria Hotels and Consultancy Services Private Limited.

However, it is not known since when funds have not been forthcoming. Going ahead, future reservations through Hyatt booking channels will remain temporarily suspended.

At Hyatt, "our guests and colleagues are a top priority, and we are working closely with the hotel''s owner to resolve this situation," he added. According to a short statement released on Monday, the hotel General Manager Hardeep Marwah informed 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," mentioned the note.

"As a consequence, the decision has been taken to temporarily suspend all operations...with immediate effect. The hotel will remain closed until further notice."

The ongoing pandemic has severely hit the hotel industry with travel restrictions resulting in slowdown. As of March 31, 2021, the promoter and promoter group holds 70.42 per cent shares of the company while public retains 29.58 per cent.

Asia Hotels (West) was originally incorporated as Chillwinds Hotels Private Limited on January 8, 2007.