KL's Hotel Istana to cease operations after 30 years

 

The 30-year-old five-star Hotel Istana in Kuala Lumpur is set to close its doors come Sept 1.

Its general manager, Noorazzudin Omar, in a notice of cessation to staff dated June 30 said a voluntary separation scheme was being offered to the affected employees of the hotel.

"We have arrived at this decision (to cease operations) after considering the present circumstances and all available options.

"We are left with little choice other than to proceed with this closure," Noorazzudin said.

The 486-room hotel is located in the centre of the city along Jalan Raja Chulan. 

Noorazzudin in his message noted the hotel's competitive advantage had declined over a period of time in the face of stringent competition from new and neighbouring hotels and serviced apartments.

This, he said, was made worse by the Covid-19 pandemic which has shuttered most hotels except those that offer quarantine facilities.

"This has impacted our business, rates, returns and occupancy despite our best efforts.

"Even as a quarantine hotel, we are incurring monthly operational losses," he said.

"As such, after a proper evaluation of the hotel and its viability, we have decided to cease operations," Noorazzudin added.

According to the Malaysian Association of Hotels (MAH), the first round of hotel shutdowns due to the Covid-19 pandemic saw a large number of layoffs among hotel staff.

The first movement control order was enforced on March 18 last year and MAH data reportedly found 2,041 employees laid off, 9,773 put on unpaid leave and another 5,054 suffering pay cuts by end of the same month.

Hotel Istana is owned by Tradewinds Corp Bhd, one of the country's largest hotel owners and operators.

The company reportedly holds seven hospitality assets under its portfolio, three of which are resorts which include the Mutiara Taman Negara, the Meritus Pelangi Beach Resort and Spa in Langkawi, and The Danna Langkawi.

The other four city and business hotels it owns are Hotel Istana, the Hilton Petaling Jaya, the Hilton Kuching, and the Mutiara Johor Baru, the last which reportedly ceased operations in May this year. - Mkini