Home > Lockdown Impact > Day 13 | One of the biggest challenges for the industry will be the recovery of debtors for the hotels: Satyen Jain
Lockdown Impact

Day 13 | One of the biggest challenges for the industry will be the recovery of debtors for the hotels: Satyen Jain

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As the hospitality industry has been taking a hit with each day passing since late March following the Centre’s move to implement a nationwide lockdown in view to curb the spread of the highly contagious coronavirus, Satyen Jain, CEO, Pride Group of Hotels, said, “The hospitality industry has been affected drastically by the COVID-19 outbreak worldwide, forcing many hotels to close while some have had to work with a skeleton staff. The Indian hospitality sector will continue to see the impact of the pandemic till April resulting in very low hotel occupancy. But May –June the industry should be back to 50 per cent in case the COVID-19 cases are controlled and lockdown is lifted completely. It’s a very tough time for the Hospitality sector, with the substantial loss of revenue the industry has to find ways to navigate the crisis. In the upcoming two months, the industry will see a dip of Occupancy, ARR & Profitability. ARR could be marginally lower due to the slowness of demand. The long term impact of COVID on the industry is not yet fully quantifiable because of the uncertainty of the situation. Both the revenue and supply chain has been hit hard. One of the biggest challenges that the industry will face is the recovery of debtors for the hotels. There is a serious concern with the cash flow of hotel units & its vendors, which is impacting the entire hospitality ecosystem. At Pride Hotels, we are trying to mitigate the cash by minimizing our fixed cost and trying to maintain a strong relationship with our corporates while building our pipeline of business for the future months.”

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