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These 7 Famous Hotels In Malaysia That Have Shut Down For Good Due To Covid-19

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Source: Trip Advisor & The Sun Daily & Malay Mail
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The tourism industry has been one of the most affected industries due to Covid-19 pandemic. With everyone confined to their house and no foreigners being allowed to enter, hotels are only being used as quarantine centres.

While some businesses may be struggling in the past few years, the effects of Covid-19 got many directors of companies to make the hard choice of shutting down for good as future even after the pandemic did not look so bright.

New Straits Times reported that Malaysian Association of Hotels (MAH) chief executive officer Yap Lip Seng said approximately 15 per cent of hotels in Malaysia may have to shut down their operations due to the Covid-19 pandemic.

“Some hotel operators said they would remain closed at least till year end, while some said they would only resume their businesses after a vaccine for Covid-19 is found.”

Here are some hotels in Malaysia that have been forced to shut down due to the pandemic:

1. Jazz Hotel

Jazz Hotel at Tanjung Tokong, Penang closed down after a bit more than a year of operation after the management revealed that extensive cost management had been taken since the beginning of the pandemic.

The hotel also reportedly didn’t manage to get funds from its investors to further sustain the business.

Last day of operation: 30 April 2020

 

2. G City Club Hotel

The closure of this 5-star hotel after almost 10 years in business came as a shock to many. According to Malay Mail, the decision of closing down this hotel came from the increase of competition from various homestays and hotels around KLCC.

“The hotel had been initially conceptualised and targeted at corporate travellers and the past few years has seen a sharp decrease in our corporate clientele especially from the oil and gas industry.”

Due to the Covid-19 pandemic and also the prediction that it would take 18 years for the global economy to restabilize led to this closure as well.

Last day of operation: 30 April 2020

 

3. Kinta Riverfront Hotel & Suites 

One of Ipoh’s most prominent hotels announced its closure on the 22nd of April. The Star reported that the hotel has been suffering losses even since before the pandemic but the pandemic had caused “millions” in revenue loss.

The 4-star hotel which has been in operation for the past eight years said that despite best efforts to stay in business, the deep financial crisis they were in left them with no choice.

Last day of operation: 30 April 2020

 

4. Tower Regency Hotel

This hotel from Ipoh as well has been closed down after suffering millions in losses caused by the Covid-19 pandemic. Not only that, but they have also faced stiff competition from homestays and unauthorized accommodations for quite some time.

“These types of accommodation are subject to minimal, if any, compliance which means minimal cost to them.”

Last day of operation: 30 April 2020

 

5. Ramada Plaza Melaka

Ramada Plaza Melaka Hotel or Ramada Plaza by Wyndham (previously known as the Renaissance Melaka) has announced it will cease operating on June 30.

The hotel’s operator, MTB Realty said that the outbreak and the resulting imposition of the Movement Control Order severely impacted the hospitality industry. “As a result of the crisis, the continued operation of the hotel is no longer viable,” they said. The closing down of this hotel will truly be felt as it has been operating for the past 39 years since 1981.

Last day of operation: 30 June 2020

 

6. Jerejak Island Resort 

The hotel which is managed by VHM Hotel Management Group. announced its closure soon after Jazz Hotel. Most hotels in Penang invested heavily in their operations in hopes of the Visit Malaysia 2020 campaign which was ultimately cancelled.

The closure was confirmed by Malaysian Association of Hotels Penang Chapter chairman Khoo Boo Lim but he stressed that the officials were yet to be informed of the matter.

Last day of operation: 30 April 2020

 

7. Penaga Hotel

This hotel is also situated in Penang and managed by VHM Hotel Management Group will also close down at the end of last month. Despite being in the UNESCO Heritage Site, they have also felt the stress brought by the pandemic. Lack of tourists brought by the MCO led to this ultimate decision.

Last day of operation: 30 April 2020

What do you think of the closure of these prominent hotels? Let us know in the comment sections!

 

Also read: 7 Well-Known Businesses In Malaysia That Are Shutting Down Due To Covid-19

Source: Hotels.com
Source: Malay Mail
Source: Booking.com
Source: Trip Advisor
Source: Ramada Plaza
Source: Agoda
Source: Booking.com
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