Hospitality firms look at one-time debt restructuring as moratorium ends

On account of being highly leveraged, 15 per cent of the total 160,000 rooms are at a risk of being shuttered forever according to hotel industry estimates

Hospitality firms sitting on large debt piles are now looking to go for a one-time restructuring, with the moratorium period now over.

On account of being highly leveraged, 15 per cent of the total 160,000 rooms —nearly 24,000 — are facing the risk of permanent closure, show industry estimates. 

The hospitality sector, by nature, has a high fixed cost structure and the lockdown led to significant erosion in revenues and margins. The industry now has its eyes set on the recommendations of the KV Kamath Committee.

The immediate task of the panel — expected to come out with its report