The Hyatt Regency, one of Mumbai's best known 5-star hotels, is set to shut down "until further notice". Indicating the financial strain it faces, the property's authorities have said they have no money to pay salaries.
The hotel, located close to the Mumbai airport, is owned by Asian Hotels (West) Ltd.
In a short statement released on Monday, the hotel General Manager Hardeep Marwah said the parent firm had not sent money for operations.
"This is to inform all the on-roll staff of the hotel that no funds are forthcoming from Asian Hotels (West) Ltd, the owner of Hyatt Regency Mumbai, to enable payment of salaries or to support the operations of the hotel," Mr Marwah wrote.
"As a consequence, the decision has been taken to temporarily suspend all operations...with immediate effect. The hotel will remain closed until further notice."
The hotel industry has taken a major hit across the country since the pandemic reached India in January 2020. With travel reduced to a bare minimum amid the tourism slump and business slowdown. While the nationwide lockdown imposed last year left the industry struggling, the second Covid wave struck early this year just as tourism and hospitality were beginning to look up again.
Mumbai, dubbed the financial capital of India, is one of the most important hubs for the sector along with Delhi. On Monday the city reported 728 new Covid cases along with 28 deaths.
Maharashtra has remained the worst Covid-affected state in the country consistently since the beginning of the pandemic. The state registered 10,219 new cases on Monday, the lowest since March 5. Overall, it also reported 154 Covid fatalities.