Prominent Penang hotel closing down

Saturday, 27 Jan, 2021 0

Penang landmark property Hotel Equatorial will shut down by the end of March 2021 after 30 years.

It is checking out of the market due to the ‘adverse business conditions’ caused by the pandemic and Malaysia’s movement control order restrictions.

It was a ‘sad and difficult decision’ the five star hotel’s management said.

"The last day of business to the public has yet to be decided but it will be before March 31, 2021. Until we officially cease operations, all of you shall remain as employees of the hotel and we remain committed to upkeep the strong heritage and name of Hotel Equatorial Penang," it said in a memo to workers.

In spite of ‘huge losses,’ it will pay severance packages to employees.

The hotel has 413 guestrooms and suites.

Other Penang properties Hotel Penaga, Jazz Hotel and Jerejak Island Resort have succumbed to the pandemic and announced their closures, and the Malaysian Association of Hotels expects more will follow in Penang and across Malaysia.

MAH CEO Yap Lip Seng says many more will go without more direct assistance like higher wage subsidies and discounts for utilities.

Written by Ray Montgomery, Asia Editor

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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