The management of Hotel Istana Kuala Lumpur in Jalan Raja Chulan had on Wednesday (30 June) announced that they will be shutting their doors permanently on 1 September.
According to Berita Harian, the General Manager of Hotel Istana, Nooradzzudin Omar shared that the management is in the midst of closing their business and they had offered a Voluntary Separation Scheme (VSS) to all the affected employees.
He said that it was a difficult decision to close the operations due to the challenging economic situation brought about by the Covid-19 pandemic, which further increase the intense competition in the hospitality industry.
“We arrived at the decision after considering the current situation and all the options we have. Nonetheless, we don’t have much choice other than to close the business.” he said.
The situation was worsen by the new hotels and and serviced apartments that arose nearby.
“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.”
“Even as a quarantine hotel, we are incurring monthly operational losses. As such after a proper evaluation of the hotel and its viability, we have decided to cease operations.” he added.
The hotel and tourism industry was the most affected by the Movement Control Orders (MCO) that was implemented to curb the virus.
Nonetheless, the situation had been dragging on and we are not more than one and a half years into the MCO. Yet, the situation in Malaysia had not been turning well.
Hotel Istana is a 5-star hotel located in the Kuala Lumpur’s golden triangle. It has been operation since 1992 and it was officially launched by Tun Dr Mahathir Mohamad.
The 5-star hotel was owned by Tradewind Corporations and is one of the largest hotel operators in Malaysia, managing multiple hotels and resorts across the country.
We’ll miss you and the service you have provided over the 30 years.
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