IPOH, April 25 — The Kinta Riverfront Hotel and Suites here will close permanently due to financial problems exacerbated by the movement control order (MCO).

The hotel will close its doors on April 30 and is the second to announce its closure in Ipoh due to the MCO, after the Tower Regency Hotel and Apartment Sdn Bhd announced its closure earlier this month.

A notice of closure that the management issued to the staff was leaked online.

Malay Mail confirmed with employees that they received the notice.

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The notice dated April 22 and issued by Tan Kim Hee on behalf of the board of directors and management said the hotel has lost its revenue stream due the Covid-19 pandemic, which saw major room and event cancellations.

“With the implementation of MCO by the Malaysian government since March 18, 2020, the opportunity for us to regain the losses was made impossible as all travelling activities came to a halt,” said the notice sighted by Malay Mail.

“Unfortunately, the Covid-19 Pandemic has not shown any sign of slowing down with more and more countries infected and implementing lock down, which crippled the entire tourism industry worldwide.  

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“The hotel has been suffering losses for months even before the pandemic, but has continued to shoulder on and keep you employed. However, despite all the efforts we put in, we have failed to get in the funds or investors to sustain the business any larger.  

“The company is in deep financial crisis and is now left with no other options but to close the hotel and to let all of you go.”

It also said that the company will provide a compensation package to those who are entitled despite the difficult situation.

However, an employee who wanted to remain anonymous said they were informed the hotel was only closing temporarily until July and will only make a final decision after that.

“What we heard from the employer is that the hotel will be closed down temporarily until July.

“However, the employer also told us that they might re-open the business if the situation improves by then. But for now, hotel employees will only be paid until April,” the person said when contacted.

The worker also said 150 people will be affected by the decision.

Following Prime Minister Tan Sri Muhyiddin Yassin’s declaration of the MCO beginning March 18,  all non-essential sectors have had to halt operations.

While hotels are classed as an essential service, they were limited to only catering to guests who were already checked in before the MCO.

The Kinta Riverfront Hotel and Suites located on Jalan Lim Bo Seng here opened on 2011 and has 318 rooms, three restaurants and one grand ballroom and one bar.

The hotel also hosted several business and political gatherings.