Holiday Villa Hotel & Conference Centre Subang has ceased operation effective October 1.
IJM Land Bhd, which owns the hotel, is said to be examining a range of options to boost the property's value.
According to sources with knowledge on the matter, the developer is unlikely to sell the hotel as it is situated on a valuable piece of land in a key location.
The business resort hotel is situated on 2.75 hectares of landscaped ground on Jalan SS12/1, with views of the Subang Ria Recreational lake and park. Subang Medical Centre and Dorsett Grand Subang are both just a short distance away.
"Due to the current market conditions, IJM may not wish to sell the hotel at this moment because it will not receive a fair price. We anticipate that, rather than selling the asset to maximise its worth, IJM would examine other options for it," a source told NST Property.
According to the source, IJM is now toying with several ideas on what to do with the property, but nothing concrete has been planned.
"With Dorsett Place Waterfront coming up next door, we believe that IJM will attempt to capitalise on the site," the source added.
At the time of publication, key officials at IJM Land could not be reached.
Holiday Villa Hotel & Conference Centre Subang first opened its doors in 1988 and was successfully managed by Holiday Villa Hotels & Resorts, a well-known hospitality company that owns and operates a variety of local and international hotels.
The hotel had become a popular destination thanks to the firm's efforts.
It offered 309 large guestrooms, including superior, deluxe, corporate deluxe, and Prima Floor rooms, as well as five food and beverage outlets, 18 convention and meeting spaces, including three ballrooms, and a wide choice of sports and leisure activities.
Meetings, incentives, conferences and exhibitions, as well as weddings were popular in the ballrooms.
The Victorian Ballroom, which looks out over the beautiful lake, can hold 350 people, while the Classics Ballroom, with its oak panelling and strong chandeliers, can hold 500 (theatre setting).
The Vintage Ballroom, which was by far the largest, could accommodate 1,000 people.
The hotel was busy in the early years of its opening, with customers arriving from Subang International Airport (now Sultan Abdul Aziz Shah Airport), which is only about eight kilometres away.
The hotel's business decreased after the Kuala Lumpur International Airport (KLIA) opened in Sepang in 1998.
The hotel began retrofitting all of its rooms and food and beverage outlets to improve the guest experience. It had a substantial renovation in 2014, which included guest room renovations, a new hot water system, air conditioning, and brand-new elevators.
Holiday Villa Hotels & Resorts is a rapidly expanding company. It presently operates five hotels in Malaysia, with two more set to open soon, as well as 17 hotels in significant international markets such as Saudi Arabia, Qatar, Bali, and China.