Covid impact: Hospitality sector set for consolidation
April 26, 2021
Struggling small and medium hotels likely to look for exit, say experts The hospitality industry in India is facing the brunt of the ongoing pandemic as bookings slow down to a trickle. This could accelerate mergers & acquisition activity in the industry in the second half of the year as several small and medium hotel owners come under financial stress and look for exit.
“Last year, we knew that there was a lockdown and the hotels were supposed to remain shut. Now, with these partial lockdowns, hotels continue to remain open but the bookings are next to nil. While there is no income we have to bear the expenses and costs related to keeping the units open,” said Sanath Ralia, managing partner at a Gujarat-based hospitality firm.