Hyatt Regency Mumbai operations suspended as funds held up in escrow account: Asian Hotels (West)

New Delhi, Jun 8 (PTI) Asian Hotels (West), owner of Hyatt Regency Mumbai whose operations have been suspended, on Tuesday said Yes Bank has barred it from making payments from an escrow account following a loan default.

In a regulatory filing, Asian Hotels (West) said the company on April 28, 2021 defaulted on a loan repayment to Yes Bank due to the massive effect of COVID-19 pandemic on the company and the entire hotel industry.

Since then, Yes Bank has held all funds 'including daily hotel collections in the escrow account and the Company/ Hotel are not allowed to make any payment including government taxes (like GST, VAT, TDS, PF, ESIC, etc.), vendors payments, on roll employees' salaries (more than 300 hotel and corporate employees) and other critical hotel services from the said account', it added.

Yes Bank has only made some payments from the company's escrow account towards the hotel's electricity, water and gas charges, Asian Hotels (West) said.

On May 28, in a filing to BSE, Asian Hotels (West) had said its current default amount towards Yes Bank was Rs 4.32 crore.

On Monday, Hyatt Hotels Corporation suspended operations at Hyatt Regency hotel in Mumbai, and said the property will remain closed till further notice.

'As a result of no funds forthcoming from Asian Hotels (West) Ltd, the owner of Hyatt Regency Mumbai, to sustain the operations of the hotel, a decision has been taken to temporarily suspend all operations for Hyatt Regency Mumbai,' Sunjae Sharma, Vice President and Country Head - India, Hyatt said in response to a query.

The hotel will remain closed until further notice, he added.

At Hyatt, 'our guests and colleagues are a top priority, and we are working closely with the hotel's owner to resolve this situation,' Sharma had said.

Shares of Asian Hotels (West) slumped 13.01 per cent to close at Rs 209.70 on BSE. PTI AKT ABM ABM

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting