Ipoh's Tower Regency Hotel shutters as Covid-19 proves final nail in coffin

IPOH: Tower Regency Hotel will cease operations by the end of April this year.

In an inter-office memo dated March 31 that has circulated on WhatsApp, it said the hotel, which started operations in January 2009, had suffered "millions" in losses in the last three years as it tried to keep the business running. It also said that all staff were aware that the hotel could not continue to bear the losses, especially with the current economic situation.

"The hotel has tried to make plans in the past few years, but could not predict the market demands and economic uncertainty in the industry.

"It is with a heavy heart that the hotel needs to take the drastic step of stopping its operations," it said. "The Covid-19 pandemic has severely impacted the hotel industry and also affected any chances of reviving the hotel in the immediate future. "All employees will be paid their wages, (as well as) employment termination and benefits in accordance with the Employment Act," it added. In a WhatsApp reply to a query, hotel managing director Simon Leong confirmed that that they would be closing down. "The hotel industry has been adversely affected by the 'unfair competition' from home stays and other unregulated accommodations for some time. "These types of accommodation are subject to minimal, if any, compliance which means minimal cost to them," he said, adding that the movement control order and Covid-19 also badly affected the industry. "The hotel industry needs more and urgent support from our government to survive, and we hope Tower Regency will be able to open our doors again should the situation improve in the near future," he added.

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