No Money to Pay Salaries, Hyatt Regency Mumbai Suspends Operations Due To Fund Crunch
Global hospitality firm Hyatt Hotels Corporation has suspended operations at Hyatt Regency hotel in Mumbai, and confirmed that the property will remain closed till further notice. Hyatt is an American hospitality company that manages and franchises hotels. It is managing the Mumbai property on a contract basis on behalf of Asian Hotels (West).
“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,” said Sunjae Sharma, vice president and country head – India, Hyatt Regency wrote to its on-roll employees.
Incidentally, the global hospitality major’s landmark proper major’s landmark property in India – Hyatt Regency Delhi (owned by a different group) – has been off Hyatt’s global booking website since at least last winter. While several hotel properties across the country have closed operations temporarily and permanently over the last one year, this is the first time that a five-star property in the heart of the country’s financial capital has taken that route.
Due to lockdown restrictions in both the COVID-19 waves in the country, the hospitality industry claims to have suffered losses of nearly Rs 100,000 crore since March 2020. The Hyatt Regency Mumbai shutdown news came on the same day when the Maharashtra government eased several restrictions as part of the unlocking, giving hope of a revival of the state’s economy.
