IPOH: Designed in a neo-classical theme, Syeun Hotel here had issued a notice to its staff that the hotel would shut its doors by the end of May.
The four-star hotel is the fourth hotel in Ipoh that would cease operations due to the impact of the Covid-19 pandemic.
A retrenchment notice dated today (April 30) has gone viral on social media. It said that the hotel has suffered since the last three years even before the Movement Control Order (MCO) was enforced.
The letter signed by the hotel's director, Loh Sow Chee pointed out that the management was unable to conduct business and with the MCO being further extended, it would be highly unlikely that the tourism industry would recover in the near future.
"A sharp decline in demand of hotel accommodation and other facilities inevitably caused a drop in sales turnover to a significant low.
"We would not even afford to stretch our financial capabilities any further to meet our fixed costs to sustain our operations, even with the inevitable mounting of more debts and liabilities," the notice said.
It said arrangements would be made to pay staff salaries up to and including May 31 plus other remuneration. The hotel has 155 employees.
The hotel will also pay its employees retrenchment benefits in accordance with the Employment Act 1955 - Employment (Termination and Lay-Off Benefits) Regulation 1980.
Earlier this month, it was reported that the Tower Regency Hotel and Kinta Riverfront Hotel and Suites, here would also closed down its operation today (April 30).
On April 27, in a filing with Bursa Malaysia, Plenitude Bhd said it would be closing two hotels in Penang namely Mercure Penang Beach and The Gurney Resort Hotel and Residences, as well as Travelodge Ipoh here, with immediate effect.