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PETALING JAYA: Park Royal Kuala Lumpur today confirmed that it will close for renovations for 15 months in a move aimed at stemming losses due to the Covid-19 pandemic.
The hotel’s spokesman, Edward Chryslo Abraham, verified an internal memo sighted by FMT which announced a “total closure of the hotel” next month and called on all its employees to accept the offered voluntary separation scheme (VSS).
The hotel said the decision was made due to the movement control order (MCO), which it said had brought the hospitality industry to “a complete halt”.
The company said its operations and finances had been severely impacted by the MCO, and that significant financial losses were projected for the year even after taking into account various cost reduction measures.
The memo issued by the hotel’s general manager, Benny Chung, said the hotel initially planned to undergo a phased renovation at the end of the year but had now opted to close totally for the renovations.
“The total closure of the hotel will minimize the operating loss plus the opportunity cost of doing a phased renovation,” said Chung.
He also urged the staff to take up the VSS, the details of which he said would be shared in a town hall meeting on Monday.
Today’s announcement is the latest in a string of shutdowns and lay-offs in the country’s hospitality industry which is struggling to cope with the loss of tourists caused by the Covid-19 pandemic.
The Kuala Lumpur Hilton announced pay cuts and retrenchments late April, and another prominent hotel in the heart of the capital, G City Club Hotel, announced its closure last month due to low occupancy rates over the past few years.
FMT also reported on the closure of a five-star hotel in Melaka last month as well as the suspension of operations of a 500-room five-star hotel in Selangor.
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