By Purvi Jain
Raj Sehgal, owner of a 3-star India’s first water resort, Wet ‘n’ Wild Hotels & Resorts in Gurgaon claims that his resort has helped in short weekend trip in the national capital region. But now says to shut down his property due to the losses incurred during the outbreak of covid-19 pandemic.
Raj Sehgal who wants to use his property to carry out some other business said, “We want to close the hotel and use it for other business now. We don’t see survival in hospitality.” He further added, “We have 13 acres of land and the resort is spread over 5.5 acres. No one wants to spreads into hotels, so we are hoping the government allows us to do some other business in the hotel premises like serviced apartments.”
Many hotel owners across India are facing problems as pushed in a debt-trap, thus shutting their hotel and reshuffle the property in some other uses like retail or office spaces seems a possible solution to them.
Some of the marquee assets in Delhi and Mumbai are in trouble. A five-star hotel in one of the best locations in Delhi, a fantastic product, may have to shut due to debt exposure,” said Nandivardhan Jain, CEO of hospitality advisory firm Noesis Capital Advisors. “Because of Covid-19, things are pretty terrible for them. If the banks do not consider restructuring their debt, the owners have no other option but to exit or dilute stake.”
He also said that the assets that were overleveraged will face a tough problem in upcoming times.
“So, some owners can foresee there is going to be a mismatch in the gross operating profit levels and what needs to be paid to banks. The government has given a moratorium of six months, but post that they have left everything to the banks,” Jain further added.
The Director of Leisure Hotel Groups, Vibhas prasad, which has hotels many other parts of India like Corbett National Park, Haridwar, Nanital, Rishikesh, Kasauli, Naukuchiatal, and Kausani are expecting a recovery by October as the next few months are critical.
The Hotelier Raj Chopra who is having 2 Marriott’s in Goa tells about the sufferings, the industry has been through.
He said, “Of all 600 people working with us, 500 disappeared. We have to wait for the labor to come back. Financially it has been a big set back and we have received no assistance.”