KUALA LUMPUR: Melaka's hospitality industry is being dealt with another hotel closure due to Covid-19.
Mahkota Hotel Melaka is set to cease its operations and its employees will be given their two months' termination notice as stipulated under their collective agreement.
Over 100 employees are expected to be impacted by this announcement.
The 3.5 star hotel is located on the city's waterfront and has been familiar with holidaying families. It is owned by First Orchid Sdn Bhd.
The New Straits Times sighted a letter on the impending closure sent to the National Union of Hotel, Bar and Restaurant Workers, dated yesterday, which stated that the employees' last working day will be on July 31.
In the letter, First Orchid's director Cheng Yong Liang said the financial impact of Covid-19 and the Movement Control Order (MCO) had resulted in the hotel's inability to sustain business operations further.
"As a result of the crisis," he said, "the continued operation of this hotel is no longer viable.
"It is with sincere regret that we wish to inform that the owners have now decided to close the business of the hotel indefinitely," he added.
Last month, it was announced that the Emperor Hotel Melaka would be closing while in April, it was reported that the five-star Ramada Plaza Melaka Hotel would also cease operating.