A notice informing staff of their termination of service by May 31, signed by the general manager of the hotel which made headlines last year over an alleged scandal involving a politician, has been making the rounds on social media since last night.

A hotel insider who asked to remain anonymous told FMT the letter was genuine. The circular was also verified by another source in the hospitality industry.

FMT is waiting for confirmation from the hotel as well as the Sabah and Labuan Malaysian Association of Hotels.

According to the letter, the hotel had been experiencing a drop in revenue for months due to a lack of demand for its services.

While the management had taken early measures to mitigate its losses, including through temporary layoffs, it said, the hotel would still be forced to close.

This follows a string of shutdowns and lay-offs in the country’s hospitality industry which is struggling to cope with the loss of tourists caused by the Covid-19 pandemic.

The Kuala Lumpur Hilton announced pay cuts and retrenchments late April, and another prominent hotel in the heart of the capital, G City Club Hotel, announced its closure last month due to low occupancy rates over the past few years.

FMT also reported on the closure of a five-star hotel in Melaka last month as well as the suspension of operations of a 500-room five-star hotel in Selangor.

Yesterday, FMT reported that the owners of some five-star hotels in Kuala Lumpur were putting their properties up for sale, with Malaysian Association of Hotel Owners executive director Shaharuddin M Saaid saying some 20 establishments had already closed.

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