Penang’s Equatorial Hotel on the verge of closing?

 

The five-star Hotel Equatorial Penang is said to be making preparations for closing down.

GEORGE TOWN: The five-star Equatorial Hotel Penang might be closing soon because of “adverse business conditions caused by Covid-19”, according to a letter to employees sighted by FMT today.

The letter, which has been circulated on social media, said “the last day of business has yet to be decided but will be before March 31”.

If the closure is confirmed, the Equatorial would be among more than 100 establishments in the hotel sector to have closed since the Covid-19 pandemic broke out last year.

A hotel spokesperson contacted for comment merely said the letter was undated and that discussions are still being held over the closure.

The letter is on hotel stationery and bears the signature of the general manager, Alan HC Ong.

“This is a very sad and difficult decision,” the letter read. Staff were told they would receive severance payments, despite “huge losses” suffered by the hotel.

A hotel spokesperson said that when a decision on the closure was reached, the hotel would post announcements on their website and social media platforms.

The 662-room hotel, located in Bukit Jambul in the south of the island, is patronised by visitors to the Bayan Lepas industrial zone.

Between March and November last year, a total of 204 tourism and hotel businesses closed because of restrictions caused by the Covid-19 pandemic.

Tourism minister Nancy Shukri told the Dewan Rakyat in November that 109 establishments in the hotel sector including hotels, resorts, motels, homestays and chalets were closed, as well as 95 tourism agencies and operators of tourism activities.

However, the ministry had also approved new licence applications from 135 tourism companies and operators during the same period. - FMT