GEORGE TOWN – It is not goodbye forever for Hotel Royal Penang, as the establishment’s management looks to reopen some time in the future after a major restructuring.
The hotel’s general manager, Amran Taib, said that the decision to shutter the doors was not made lightly but followed discussions to consider future prospects and and how long before the tourism industry can see normalcy again.
“We have decided to do our restructuring, that is why we have to close the hotel,” he told The Vibes.
“However, it will only affect the hotel, not Penang Plaza and office tenants, belonging to the same owners,” he said, referring to the adjacent shopping and office block.
“It will open again, but we do not know when.”
The hotel will look at ways to optimise its cost and improve on operational issues, he said, adding overall economic recovery is also a factor in determining when it will open its doors again.
“I am still in charge of the hotel and will be handling the restructuring. If anything happens, I’ll be the last person to leave as I will have to ensure everything is in order, that everyone is accounted for and taken care of,” he said.
“If it opens under the same owner, then the name will remain the same, as it is a brand name under a branding exercise.”
Close to 90 staff, including management personnel, will be affected by the closure on November 14.
“All staff are well taken care of and compensation will be followed through accordingly. Whatever is stipulated in their agreement will be followed through. All staff are getting a fair share of what they are supposed to get,” he said.
Meanwhile, Malaysia Association of Hotels’ (MAH) Penang chapter chairman Raj Kumar told The Vibes that the hotel business will take time to pick up.
“The cost of maintaining a hotel with low occupancy is difficult because we need 40% occupancy to break even,” he said.
“Now, as we look at the pandemic that has turned endemic, anyone who gets Covid-19 will have to be quarantined for at least 10 days. During that time, we will lose manpower and customers. We cannot just open and close the hotel like we are switching the lights on and off.
“Running on low occupancy costs higher than leaving it closed.”
Raj said he would not be surprised if another hotel makes a similar move to close in another one to two months.
Other hotels that have closed down since the pandemic broke out include Hotel Equatorial, Northam Hotel and Holiday Inn.
“We are also not getting any international tourists. If we rely on local tourists, most will visit during the weekends.
“With international tourists, they will stay for a week, a fortnight or even a month.
“Plus, Hotel Royal is a city hotel. Now, nothing (in the city) is open. Even restaurants in George Town remain very cautious, though they can open for dine-ins.
“I have said this before – if we don’t overcome this, we might have very few hotels operating in Penang in the future.” – The Vibes, September 16, 2021
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