GEORGE TOWN: Just over a year since its inception, the unique Jazz Hotel at Tanjong Tokong here will cease operations by the end of this month due to the ongoing Covid-19 pandemic.
A memo titled 'Closure of Hotel Business' from the hotel's board of directors and management to its staff dated April 22 revealed that the hotel will be closed, and its staff retrenched.
It said that the management had taken extensive cost management measures since the virus was discovered late last year.
It also noted that the hotel has been suffering losses for months even before the virus outbreak, but had tried to maintain its employees.
The hotel also reportedly failed to get funds from investors to sustain the business, leading to a financial crisis.
The memo stated that the management was left with no other option but to cease operations and retrench its staff.
"Your last working day shall be on April 30 and your manager will be in contact with you from tomorrow (April 23) onwards to explain to those who are entitled to the compensation package.
"We want to thank you for your hard work and commitment which you have shown throughout the year and we wish all of you the best in your future endeavours," said the memo.
As of today, the number of staff affected and the losses suffered have not been revealed.
Malaysian Association of Hotels (MAH) Penang Chapter chairman Khoo Boo Lim confirmed the hotel's closure.
"For the record, the hotel has not officially informed MAH of their closure so I believe it's only for a period of time," he said in a text message.
The 30-storey Jazz Hotel was officially opened in January last year. It has 255-rooms, adapting jazz-themed designs to honour the Jazz Age from the 1920's and 30's.