PLENITUDE Bhd is closing the operations of three hotels, namely Mercure Penang Beach and The Gurney Resort Hotel & Residences, both in Penang, and Travelodge Ipoh in Perak with immediate effect.

It is also downsizing operations in the other hotels it owns.

This decision is a direct result of the Covid-19 pandemic, which has severely impacted the company’s hospitality business, Plenitude said today in a filing to Bursa Malaysia.

“With domestic and worldwide travel restrictions, the company’s hotels have suffered significant decrease of business and the company has no alternative but to downsize its business and operations,” it said.

Another established Ipoh hotel, Kinta Riverfront Hotel and Suites will shutter at the end of the month, according to The Star Online.

An inter-office notice dated April 22 which was sent out to staff stated that the eight-year-old establishment would close down on April 30.

In the letter, company spokesman Tan Kim Hee said the hotel could no longer sustain itself having suffered losses for months before the pandemic dealt the industry a blow.

“Millions” in revenue were lost due to cancellation of bookings, it said.

“With the movement control order enforced since March 18, the opportunity to regain the losses was made impossible as all travelling activities came to a halt,” the letter said.

“The pandemic is not showing signs of slowing down, with more countries being affected and lockdowns being implemented that crippled the entire tourism industry worldwide.

A compensation will be worked out for hotel staff who are laid off, the letter said. – April 27, 2020.