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PETALING JAYA: A five-star hotel in Melaka has decided to close indefinitely, the second hotel reported doing so, saying it was no longer “feasible” to continue operations in light of the Covid-19 crisis.
According to a circular sighted by FMT, addressed to the hotel union by the owners, the hotel will close on June 30.
He said the pandemic and the subsequent movement control order (MCO) had severely impacted the hotel industry, and the hotel “was no exception.”
“As a result of the crisis, the continued operation of the hotel is no longer viable.
“We regret to report sincerely that the owners have now decided to close the hotel business indefinitely,” the circular said.
The owners said they will provide a two-month termination notice to their employees.
The hotel will also pay employees “termination benefits under their employment contracts.”
Meanwhile, an executive at another Melaka-based hotel, who spoke on condition of anonymity, said news of the closure of this particular hotel had been circulating for the past two weeks.
The source said an employee of the hotel had confirmed the matter with members of the Malaysian Hotel Association (MAH).
The source also said that some more hotels in the state could also suffer a similar destination and “temporarily close for a few months.”
Yesterday, FMT reported that a 500-room, 5-star hotel in the Klang Valley is preparing to halt operations until the end of the year.
A leaked memo to employees of the expanding hotel told them to take unpaid vacations throughout the closing.
Permanent staff were also assured of their jobs if the hotel resumed operations. Employees are expected to receive a half-month salary by April.
G City Club Hotel near KLCC also closes
Meanwhile, G City Club Hotel Sdn Bhd also announced its closure after a decade of operations, citing the low occupancy suffered in recent years by increased competition from new hotels and the proliferation of family homes in the vicinity of KLCC.
Prolonged road works and MRT works in the vicinity of KLCC had also created accessibility problems in the Jalan Tun Razak area, resulting in much less occupation by leisure travelers.
This, he said, was compounded by the Covid-9 crisis and forecasts that the world economy would take 18 months and low confidence in travel would normalize.
“Management has reviewed its hotel operations and is making the difficult but necessary decision to cease operations,” it said in a statement.
“This is a tremendously sad day for the hotel and our 79 employees,” he said, adding that adequate notice will be given while wages and termination benefits are paid.
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