The 10-storey building, once a 150-room establishment owned by former Sabah chief minister Harris Salleh, was declared structurally unsafe and closed in November 1997.

Labuan Corporation CEO Sukuran Taib confirmed the long-awaited demolition works will now proceed after a tender was successfully issued in March this year.

He said contractors had been mobilised and initial preparations at the site were already under way.

“Hotel Labuan has been left idle for too long, posing safety risks to the public.

“With demolition now moving forward, we can pave the way for new development opportunities that better serve the community,” Bernama reported him as saying today.

For many long-time residents, the announcement is bittersweet as the hotel once served as a hub for social gatherings, business events and visits by dignitaries.

“The hotel’s removal highlights the balance Labuan faces between preserving historical identity and advancing modern development.

“Although the future use of the land has yet to be disclosed, observers note redevelopment is likely to align with Labuan’s ambitions as a financial, tourism and logistics hub,” said 65-year-old retiree Mustafa Ali Abidin.

He said the removal of Labuan’s last visible symbol of its early urban era would leave behind only memories and photographs of its once-prominent role in the island’s history.