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KUALA LUMPUR (Bernama): G City Club Hotel Sdn Bhd, which manages a 180-room hotel under the brand name GTower Hotel, is closing its hotel operations after a decade in business due to a drop in occupancy rates.
G City Club Hotel said the decision to cease operations was a direct result of the low occupancy suffered in recent years by increased competition from new hotels and the proliferation of family homes in the Downtown area. from Kuala Lumpur (KLCC).
“The hotel had been initially conceptualized and targeted at corporate travelers and in recent years we have seen a sharp decline in our corporate clientele, especially from the oil and gas industry,” it said in a statement Wednesday (April 29).
He added that prolonged roadworks and mass rapid transit works around KLCC have also created accessibility problems in the Jalan Tun Razak area, resulting in much less occupancy for leisure travelers.
G City Club Hotel said its adoption of a light asset model with hotel facilities on a rental basis also generated much higher fixed costs, particularly from rents.
“With Covid-19 and the 18-month forecast before normalization of the global economy and low confidence in travel, the administration reviewed its hotel operations and is making a difficult but necessary decision to stop operating,” said the hotel. .
He added that the 79 employees will receive adequate notice in accordance with the terms of their employment contract and will be paid their wages, as well as termination benefits in accordance with the Employment Law. – Bernama
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