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PETALING JAYA: The Parkroyal Hotel located in the heart of Kuala Lumpur will be closed for renovations for 15 months.
In a memo to its associates, the hotel said its operation and financial performance were severely affected as a result of the Motion Control Order (MCO) to control the Covid-19 outbreak.
He said he had forecast a significant financial loss for 2020, even after taking several cost-cutting measures into account.
Before the Covid-19 pandemic, the hotel had already planned to undergo a phased renovation in the latter part of the year, but after much consideration, decided to close it entirely in June for 15 months to carry out the renovations.
“The full closure of the hotel will minimize operating loss plus the opportunity cost of staging a renovation,” CEO Benny Chung said in the memo on Friday (May 15).
Chung said that with the closure of the hotel, all employees will be offered a voluntary separation scheme (VSS).
He urged employees to accept VSS’s offer, claiming that it was better for most unionized employees compared to the downsizing stipulated in the union agreement (CA).
Chung said he would host a town hall session on May 18 to share more about the VSS.
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