As the spread of Covid-19 gets under control, we’re now starting to see the real damage of the pandemic on our economy and businesses as more companies are being shut down everyday.
One of the sectors that suffered the most during the Movement Control Order (MCO) was the hospitality industry and it was reported previously that approximately 15 per cent of the hotels in Malaysia may have to shut down their operations due to the Covid-19 pandemic.
Over the past month, it has been reported that some hotels had to implement pay cuts and unfortunately some had to take even more drastic measures — shutting the business down for good.
Here we take a look at the casualties of the hospitality industry.
1) Tower Regency Hotel, Ipoh
The hotel which started operations back in January 2009 has been making a loss and suffered “millions” in losses in the last three years as it tried to keep the business running.
Hence, with the Covid-19 pandemic, it only made the situation worse and they had to cease their business for good at the end of last month, April 2020.
2) Kinta Riverfront Hotel and Suites, Ipoh
Another prominent hotel in Ipoh, Kinta Riverfront Hotel and Suites has closed its doors permanently on April 30th recently. An inter-office notice dated April 22 which the hotel sent out to its staff stated that it will close down on April 30 circulated widely on WhatsApp.
Similarly to the Tower Regency Hotel, it was reported that the hotel could not sustain its business anymore as they’ve suffered losses for months even before the Covid-19 pandemic dealt the industry a blow. The hotel also said that the pandemic took a huge impact on its finances as “millions” in revenue were lost due to cancellation of rooms and events.
3) Syeun Hotel, Ipoh
Officially opening its doors in 1993, Syeun Hotel one of the oldest hotels in Ipoh unfortunately has also become another list to add to hotels shutting down because of the Covid-19 pandemic.
A retrenchment notice dated Thursday, April 30 was sent to its staff stating that the hotel will shut at the end of May 31 has been widely shared on social media. The notice added that the hotel has also been suffering losses for the last three years even before Covid-19 happened.
4) Hotel Penaga, Penang
Further north, Hotel Penaga in Penang has also closed permanently on April 30th. According to a notice shared on social media, the hotel has been suffering a loss for months before the pandemic happened and tried their best to shoulder on and keep everyone employed.
However due to the Covid-19 pandemic hampering the hospitality industry, they failed to raise enough funds or find investors to sustain the business any longer.
5) Jazz Hotel, Penang
The 30-storey Jazz Hotel was officially opened in January last year with 255-rooms, adapting jazz-themed designs to honour the Jazz Age from the 1920’s and 30’s.
Although only just over a year since it began operations, the unique Jazz Hotel at Tanjong Tokong here has already ceased operations at the end of April due to the ongoing Covid-19 pandemic.
6) Jerejak Island Resort, Penang
Another hotel located in Penang, Jerejak Island Resort has announced their closure and strangely enough their notice that was sent to staff was similar to the ones released by Hotel Penaga and Jazz Hotel.
It’s rumored that the owners of the hotel are the same people hence the same notice that was sent to staff. Check it out here.
7) GTower Hotel
The 180-room GTower hotel which is under the management of G City Club Hotel Sdn Bhd, is shutting down its operations after a decade in the business, due to a drop in occupancy rates.
It’s reported that G City Club Hotel said the decision to cease operations was a direct result of low occupancy suffered in the past few years from increased competition from new hotels and the proliferation of homestays in the Kuala Lumpur City Centre (KLCC) vicinity.
8) Ramada Plaza Melaka Hotel
The 5-star 294-room Ramada Plaza Melaka Hotel or Ramada Plaza by Wyndham (previously known as the Renaissance Melaka) has announced it will cease operating on June 30.
As a result of the crisis, the hotel management said in a letter dated April 28 that the continued operation of the hotel is no longer viable and it’s with sincere regret that have now decided to close the business of the hotel indefinitely.