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Hyatt Regency Closed: Yes Bank suspends accounts, company fails to repay loan

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Hyatt Regency had said in the information given to BSE that it has failed to repay the loan of Rs 4.32 crore to Yes Bank.

Hyatt Regency (Photo: hyatt.com)

Asian Hotels (West), owned by five-star hotel Hyatt Regency Mumbai, on Tuesday said Yes Bank has stopped making payments from its escrow account with the bank due to non-payment of a loan. The business of Mumbai Hyatt Regency was suspended due to lack of funds.

Asian Hotels (West) said in a regulatory filing that it could not repay Yes Bank’s debt as on April 28, 2021 due to the widespread impact of the pandemic on the company and the entire hotel industry. The bank then said, ‘Yes Bank has prohibited the use of all funds in the escrow account including the daily business proceeds of the hotel.’

300 employees not paid salary

He said that the company/hotel has to make payment from the said account to government taxes (GST, VAT, TDS, PF etc.), vendor payments, salaries of third party employees (more than 300) and any other essential services of the hotel. is not approved.

canceled accounts

Asian Hotels (West) said Yes Bank has made certain payments only towards the hotel’s electricity, water and gas charges from the company’s escrow account. On May 28, the company had said in a communication to the BSE that it had failed to repay a loan of Rs 4.32 crore to Yes Bank. On Monday, Hyatt Hotels Corporation suspended operations at the Hyatt Regency Hotel in Mumbai and said That the hotel will remain closed until further notice.

hotel closure announcement

Earlier, Hyatt Regency had announced that it has closed its operations until further orders. Citing financial challenges, hotel officials said they did not have the money to pay salaries to the employees. Located near Mumbai Airport, this hotel is owned by Asian Hotels (West) Limited. After the onset of the Corona epidemic last year, the hotel industry has been badly affected. In a statement on Monday, the hotel’s general manager Hardeep Marwa said that the money is not coming from Asian Hotel, so the business will have to be closed till further orders. And it will come into force with immediate effect.

(with language input)

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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