Hospitality industry crisis: EIH says there are up to Rs 6,800 crore worth of assets for sale
/Hospitality industry is currently having a good time with high occupancy rates and rising room rates. Yet, a prolonged depressed market till 2016 is taking a toll on the sector. Realty developers are now putting their over-leveraged hotel projects on the block as super-profits from their residential projects have dried up.
"The industry has suffered from high debt and sluggish demand between 2008 and 2015 as a result of which there are up to Rs 6,800 crore worth of assets for sale today. More hotels with distressed balance-sheets are likely to join this pool with the new insolvency laws introduced in June 2016," East India Hotels (EIH) in its annual report.
East India Hotels is one of the leading hospitality group in the country that manages Oberois and Trident brand of hotels in the country, including the one at Hyderabad which is up for sale now.
Trident at Hyderabad is a classic case of what's wrong with the hospitality sector of the country.
