Hospitality firms may go for fund raising to stay afloat as recovery eludes

EIH's successful rights issue to help firm reduce debt substantially, paves way for more companies to actively consider fund raising

A delayed recovery in the hospitality sector will prompt more companies to look at fundraising options, say analysts. The recently concluded rights issue of EIH (under the aegis of The Oberoi Group) will help the company reduce debt and improve its overall a balance sheet.

A persistent rise in Covid cases in India and a second wave in a few continents is set to derail the overall recovery. Those with a strong balance sheet and comfortable liquidity position are better positioned to deal with the disruption. Even as hotels in leisure destinations have started seeing recovery, for business hotels, the