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Hyatt Regency Mumbai shuts operations indefinitely due to lack of funds

Asset owner Asian Hotels facing financial crunch, defaults on loan repayment

Topics
Hyatt Hotels | Asian Hotels | Lockdown

Shally Seth Mohile  |  Mumbai 

hotels
On May 28, in a notification to the Bombay Stock Exchange, Asian Hotels said it has defaulted on an interest payment of Rs 4.32 crore to its lender Yes Bank

Hyatt Regency on Monday said it has shut its property due to the financial crunch facing its asset owner (West). The five star property issued a notice informing the staff on its roll that no funds are being infused from the property owner to meet the operational expenses of the hotel including payment of salaries. The hotel, therefore, has to be closed until further notice.

“As a result of no funds forthcoming from to sustain the operations of the hotel, a decision has been taken to temporarily suspend all operations for Hyatt Regency The hotel will remain closed until further notice,” said Sunjae Sharma, Vice President & Country Head – India, Hyatt in a statement. “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 said.

Hyatt is managing the property in Mumbai on a contract basis on behalf of Sushil Kumar Gupta is the chairman and managing director of Asian Hotels. On May 28, in a notification to the Bombay Stock Exchange, Asian Hotels said it has defaulted on an interest payment of Rs 4.32 crore to its lender Yes Bank. Total financial indebtedness of the listed entity including short-term and long term debt stood at Rs 262.54 crore as on May 1, 2021

Hyatt is an American hospitality brand that manages and franchises hotels. Located near Mumbai’s international airport, the hotel said that it will not accept reservations through Hyatt booking channels and will remain temporarily unavailable.

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First Published: Mon, June 07 2021. 22:15 IST
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