Another decades-old hotel bites the dust as Covid-19 batters economy

Holiday Inn Resort, which has been in operation for more than 40 years in Penang, is the latest hotel to bite the dust amid an economic downturn brought about by the Covid-19 pandemic.

The four-star hotel in Batu Ferringhi is expected to close by June 30.

The hotel owner, Hong-Kong-based Harilela Group, via its subsidiary Asia Garden Sdn Bhd, issued a notice to staff about the closure, according to the New Straits Times.

"After extensive consideration, it is with regret that we advise that our hotel will cease operations from June 30," he said.

"This has been an extremely difficult decision for our owners who have been committed to Penang for over 40 years.

"The magnitude of this crisis has proven to be overwhelming and the continuation of business is no longer a viable proposition," the report quoted the notice as saying.

In April, Ramada Hotel (photo), which had been a landmark in Malacca town for almost 40 years, also announced that it was closing by June 30.

“As a result of the crisis, the continued operation of the hotel is no longer viable. It is with sincere regrets that we wish to inform that the owners have now decided to close the business of the hotel indefinitely,” it had said in a letter to the National Union of Hotel, Bar and Restaurant Workers.

In the same month, Kinta Riverfront Hotel in Ipoh, Perak which has been in operation since 2012 also announced its closure.

"The company has carried out extensive cost management measures since Covid-19 was first discovered in the Asia region, especially in China late last year.

"With the movement control order (MCO) enforced since March 18, the opportunity to regain the losses was made impossible as all travelling activities came to a halt," it said in a letter to staff.

Late last month, Sheraton's Four Points hotel in Sandakan was also reported to be shuttering, according to Sabah-based Daily Express.

The hotel came under the spotlight in the country's political drama when former Santubong PKR Youth chief Muhammad Haziq Abdul Aziz accused senior minister Azmin Ali of having sex with him following the release of a video of the alleged act.

Homosexuality is a taboo in a conservative Malay Muslim-majority country like Malaysia. - Mkini