Last night (Wednesday, 29th April), GTower Hotel took to Facebook to announce its hotel operations will be shutting down after a decade in the business.
G City Club Hotel Sdn Bhd stated that the decision to pull the curtain on the 180-room hotel was due to low occupancy rates in midst of the movement control order (MCO).
“The hotel had been initially conceptualised and targeted at corporate travellers and the past few years has seen a sharp decrease in our corporate clientele especially from the oil and gas industry,” the company said in a statement.
The last few years have also seen a rise in newer and cheaper hotels as well as homestays in the Kuala Lumpur City Centre (KLCC) vicinity. The accessibility of public transport to Jalan Tun Razak and Bukit Bintang have also contributed to the drop in GTower Hotel occupancy from leisure travellers.
“With Covid-19 and forecast of 18 months before normalisation of the global economy, and low travel confidence, the management reviewed its hotel operations and is making a difficult but needed decision to cease operations,” the hotel added.
Bernama reported that all 79 employees have been notified beforehand in accordance to their Employment Contract terms and will be paid their due salaries in accordance with the Employment Act.
Having said that, it’s important to note that only the hotels have closed. Other facilities such as restaurants are still operating during this MCO period.
Source: Malay Mail.