Hotel Istana in Kuala Lumpur says it has decided to cease operations effective Sept 1.
The five-star hotel located at Jalan Raja Chulan in the heart of the city centre said it had considered all available options but was left with little choice other than to close.
In a letter to its staff dated June 30, it cited the stiff competition from new and neighbouring hotels and serviced apartments and the effects of the Covid-19 pandemic on the industry.
“Even as a quarantine hotel, we are incurring monthly operational losses,” it said.
“As such, after a proper evaluation of the hotel and its viability we have decided to cease operations.”
It added that it would be offering employees a voluntary separation scheme and thanked them for their service.