Hotel Istana Kuala Lumpur will be officially closing down on 1st September 2021. According to NST, a voluntary separation scheme has been offered to the employees that are affected.
It’s no secret that many hotels have been bleeding dry for the past 1.5 years. With the ongoing MCO in the country, it doesn’t look like the situation will improve anytime soon.
“We have arrived at this decision (to cease operations) after considering the present circumstances and all available options,” the hotel’s general manager Noorazzudin Omar told the English daily. “We are left with little to no choice other than to proceed with this closure.”
“The situation is now being aggravated by the Covid-19 pandemic which has and continues to impact our industry and its ability to achieve normality,” Noorazzudin noted. “This has impacted our business, rates, returns and occupancy despite our best efforts. Even as a Quarantine hotel, we are incurring monthly operational losses. As such, after a proper evaluation of the hotel and its viability, we have decided to cease operations.”
Owned by one of the biggest hotel owners and operators, Tradewinds Corp Berhad, the 486-roomed 5-star hotel at Jalan Raja Chulan has been around for approximately 3 decades. In addition to Hotel Istana Kuala Lumpur, Mutiara Johor Bharu also ceased operations 2 months ago in May.