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Asian Hotels (West) is unable to support the operations of Hyatt Regency Mumbai hotel due to liquidity crunch.
In April this year, Asian Hotels (West) defaulted on payment of interest/repayment of principal amount of loan to Yes Bank as COVID-19 pandemic affected hospitality business.
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, vendors payments, on roll employees' salaries and other critical hotel services from the said account.
Yes Bank has only released some payments from the company's escrow account towards hotel's electricity, water and gas charges.
On a consolidated basis, the company reported a net loss of Rs 37.37 crore in Q3 FY21 compared with net profit of Rs 13.17 crore in Q3 FY20. Net sales tumbled 73.4% to Rs 33.89 crore in Q3 FY21 over Q3 FY20.
Asian Hotels (West) is a holding company, which is engaged in the hotel business. The company's properties include Hotel Hyatt Regency, Mumbai and JW Marriott Hotel New Delhi Aerocity.
Meanwhile, shares of Yes Bank fell 1.99% at Rs 14.77 on BSE.
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