The deadline for submission of resolution plans for Asian Hotels (West), which runs Hyatt Regency Mumbai, has been extended by a month to May 6, at the request of the prospective resolution applicants.
The original deadline was April 7. Earlier, the entire resolution process for the bankrupt hotel was extended by 90 days to June 13.
Sources said prospective applicants were looking for more information as complete books of accounts of the hotel were not available. They said the erstwhile management was not forthcoming with the information. Applicants who have submitted expressions of interest include K Raheja Realty, Pune-based Panchsheel group and Jindal Steel & Power.
An amount close to ₹300 crore, due to the financial creditors UV Asset Reconstruction Company and PTC India Financial Services, have been more or less verified and admitted. However, a good portion of the dues claimed by government agencies, vendors and employees are still being verified.
Out of cash
Hyatt Regency, a luxury deluxe hotel situated close to both the domestic and international airports in Mumbai, was hit by travel restrictions imposed during the Covid-19 pandemic. The revenue per available room of ₹6,501 in FY20 fell to ₹2,261 in FY21. The average room rate, which was ₹8,487 in FY20, fell to ₹5,270 the next year. The occupancy rates also fell from 77 per cent to around 43 per cent as tourist arrivals dwindled.
With no guests and cashflows drying up, while it had to pay utility bills and wages of employees, the hotel finally decided to close down in June 2021. YES Bank was one of its main creditors and dragged the company to the insolvency court.
The main attraction of the hotel is that it is strategically located in close proximity to the airports; and is close to the arterial western express highway, while metro stations are also coming up nearby. With resumption in normal travel, especially international inbound tourists and corporate travellers, other hotels in the vicinity have seen a pickup in occupancies, holding out good prospects for the Hyatt as well.