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Hyatt Regency Shuts Doors; Owners Default on Loan Repayment, Car EMIs

Hyatt Regency hotel in Mumbai

Hyatt Regency hotel in Mumbai

Asian Hotels (West), promoted by Sushil Kumar Gupta, also owns JW Marriott Aerocity in New Delhi

Hyatt Regency Mumbai on Monday announced it had temporarily suspended all operations due to no funds from the owners. “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," Hardip Marwah, general manager of the luxury hotel said in a statement on Monday.

Delhi-based Asian Hotels (West), the owners of one of Mumbai’s popular five-star hotels, had defaulted on bank loan repayments including a car loan EMIs, according to reports.

Asian Hotels (West) failed to repay the principal and interest of Rs 4.32 crore taken from Yes Bank as term loans, showed the stock exchange filings. The defaults included a car loan EMI of Rs 400,000. The owners has a total debt of Rs 262.54 crore.

“As a consequence, the decision has been taken to temporarily suspend all operations for Hyatt Regency Mumbai with immediate effect," he said, adding, “The hotel will remain closed until further notice."

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“Future reservations through Hyatt booking channels will remain temporarily unavailable," Sunjae Sharma, vice president and country head — India, Hyatt said. 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.

Asian Hotels (West), promoted by Sushil Kumar Gupta, also owns JW Marriott Aerocity in New Delhi.

The coronavirus pandemic has severely affected the hospitality industry in the last one year. Several popular restaurant chains had to shut their shops due to the huge amount of loss amid pandemic. However, this was the first time that a five-star property in the heart of the Mumbai, closed its operations.

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first published:June 08, 2021, 14:40 IST