Hyatt Regency Mumbai to temporarily shut its operations due to lack of funds faced by the owner Asian Hotels (West). The 400 room luxury property is seeing low business due to the coronavirus pandemic and have shut operations until the owners can inject funds in order to pay salaries.
Being a full service, luxury hotel, the management needs to maintain a staff to room ratio of 1:2. The public areas and F&B staff will be calculated additionally. The funds are mainly required to pay salaries of employees retained.
The US based Hyatt Hotels works on a management and franchise model, which means they take over the management of a property from the owners and lend its brand name to it for a fee. Asian Hotels (West) dropped 13.01% to Rs 209.70 after the company said it temporarily suspended all operations for Hyatt Regency Mumbai with immediate effect.
The Hyatt India spokesperson has informed that online booking services for the hotel will be suspended for the time being till the issue is resolved.