Hyatt Regency Mumbai Temporarily Halted Operations due to Lack of Funds

Hyatt Regency Mumbai Temporarily Halted Operations due to Lack of Funds
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The Hyatt Regency Mumbai has “temporarily” halted operations due to a lack of finances from Asian Hotels (West) Ltd, the owner of Hyatt Regency Mumbai. Hardeep Marwah, the hotel’s general manager, stated that the parent company had not provided any funds 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,” Mr. Marwah said in a notice issued by the Hyatt Regency on 7th June 2021.

Since the pandemic hit India in January 2020, the hotel business has suffered huge damage across the country. Due to the tourism collapse and economic recession, travel has been restricted to a bare minimum. While the business struggled last year as a result of the statewide shutdown, the second Covid wave hit early this year, just as tourism and hospitality were starting to recover.

Along with Delhi, Mumbai, called India’s financial capital, is one of the most significant centers for the sector. The city recorded 728 new Covid cases and 28 fatalities today. Since the beginning of the campaign, Maharashtra has continuously been the worst-affected state in the country. Today, the state recorded 10,219 new cases, the lowest number since March 5. There were 154 Covid deaths in all, according to the study.

RBI’s Support to Hotels, Tourism and Aviation Sector in Monetary Policy

A separate liquidity window of 15,000 crores has been opened until March 31, 2022, with tenors of up to three years at the repo rate, to minimize the negative impact of the second wave of the pandemic on certain contact-intensive sectors, the RBI governor said on Friday while announcing the monetary policy.

He said banks can give support to hotels and restaurants, tourism, aviation support services, and other industries via the on-tap Liquidity Window for Contact-intensive Sectors.

Hotels and restaurants, tourism (travel agents, tour operators, and adventure/heritage facilities), aviation ancillary services (ground handling and supply chain), and other services (private bus operators, car repair services, rent-a-car service providers, event/conference organizers, spa clinics, and beauty parlors/salons) are all eligible for new lending under the scheme.

Written by Hardik Tokas

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