Bengaluru Hoteliers seek 3-month rent waiver from landlords

Hotels, restaurants and the fast-serving Darshini outlets in Bengaluru have requested their landlords to waive rentals for three months from March 15, in view of the loss of business due to the Covid-19 outbreak and uncertainties about the future.

The Bruhat Bangalore Hotels Association in a letter to the landlords of hotels and restaurants, proposed ‘a complete waiver of rentals’ and common-area maintenance fee for up to June or till such time business lockdown ends, whichever is later.

While making the plea, PC Rao, President said the industry was fighting a very grim battle for survival. “We are seeking these reliefs just for ensuring the businesses don’t die an instant death, leaving behind a trail of many unfulfilled dreams and lakhs of lost jobs, which will directly and indirectly affect everyone,” he mentioned.

Hoteliers have also batted for relief from the Bengaluru city municipal body for owners of these buildings. In a separate letter to the BBMP, Karnataka Pradesh Hotel & Restaurants’ Association has requested the civic body to offer a 50% discount on property tax on commercial buildings where hotels and restaurants are located. Landlords can pass on that benefit to the tenants, it said.

The lockdown is likely to have a long-term impact on restaurant and hotel businesses that have come to a standstill, barring small transactions of take-away food. Bruhat Bangalore Hotels Association joint secretary Prabhakar Shetty said business might not resume even after the lockdown was lifted and many restaurants might see permanent closure if not for government’s intervention.

“We may not see customers for the next few months fearing virus transmission. Lodges and hotel rooms too will have severe repercussions due to the restrictions on domestic travel,” Shetty said.

Industry veteran P Sadananda Maiya said many small outlets would close down, being unable to pay the rent. “Many of us have not been able to open our restaurant and to do even the ‘take-away’ business as there are lots of restrictions on customer movement. Added to this, we have no clear visibility on orders which results in a lot of wastage of food,” he said.

Some restaurant owners are also worried about how to resume the business once the lockdown is lifted, as many of their employees have returned to their villages.