PETALING JAYA: The Parkroyal Hotel located in the heart of Kuala Lumpur will shut down for renovations for 15 months.
In a memorandum to its associates, the hotel said that its operation and financial performance were severely affected as a result of the movement control order (MCO) to control the Covid-19 outbreak.
It said that it had forecasted significant financial loss for 2020 even after taking into account various cost-reduction measures.
Prior to the Covid-19 pandemic, the hotel had already planned to undergo phased renovation in the later part of the year, but after much consideration, decided to close it in June totally for 15 months to carry out the renovations.
“The total closure of the hotel will minimise the operating loss plus the opportunity cost of doing a phased renovation, ” general manager Benny Chung said in the memorandum on Friday (May 15).
Chung said that with the closure of the hotel, all employees would be offered a voluntary separation scheme (VSS).
He urged employees to take up the VSS offer, claiming that it was better for most unionised employees compared to retrenchment as stipulated in the collective agreement (CA).
Chung said it would organise a townhall session on May 18 to share more about the VSS.
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