A notice to the staff sighted by FMT said hotel employees will be offered a voluntary separation scheme in view of the cessation of operations.

In the notice, general manager Noorazzudin Omar said the hotel had been recording monthly losses despite operating as a quarantine centre for international returnees.

He said the hotel had lost its competitive advantage over the past few years with the entrance of new hotels and serviced apartments around the area.

“The situation has now been aggravated by the Covid-19 pandemic which has, and continues to, impact our industry and its ability to achieve normality. This has impacted our business, rates, returns and occupancy despite our best efforts.

“As such, after a proper evaluation of the hotel and its viability, we have decided to cease operations,” he said.

FMT has been informed that the hotel would be releasing an official statement soon.

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