After 10 years in service, the G City Club Hotel Sdn Bhd, which manages a 180 room hotel under its trade name, is shutting down its hotel operations as the occupancy rate has declined.
The decision to suspend operations was the result of low occupancy caused by the increased competition from new hotels in Kuala Lumpur City Center (KLCC) in the vicinity in recent years.
"The hotel was originally concepted and aimed at corporate travelers, and our corporate customers in particular from the oil and gas industry have seen a significant decrease in the last few years," it said today in a statement.
Prolonged road work and the work on mass rapid traffic in the area of the KLCC also created accessibility problems in the Jalan Tun Razak area, which resulted in significantly lower leisure occupancy.
G City Club Hotel, unlike other hotels that are asset ownership models, has also added substantially higher fixed costs particularly for rentals to the adoption of an assetlight model with hotel premises on the rental.
"The management reviewed its hotel operations with COVID-19 and an 18-month forecast of global economic standardization and low rates of travel trust and takes the difficult but appropriate decisions to end business," said the hotel.
It added that, in accordance to their terms and conditions of employment contract, all 79 workers will obtain sufficient notice and be paid salaries and termination of employment benefits in compliance with the Employment Act.
- TAGS / KEYWORDS: