KUALA LUMPUR: The impact of the Covid-19 pandemic on the local hospitality industry continues to lead to more closures, both temporary and permanent.
The five-star ParkRoyal Kuala Lumpur is fast-tracking its planned renovation by six months and offering a Voluntary Separation Scheme (VSS) to its employees.
"Prior to the Covid-19 pandemic, the hotel had planned to undergo a phased renovation starting late in 2020," general manager Benny Chung said in a memo sighted by the New Straits Times.
"After much consideration, the company has decided to close the hotel totally for renovation starting mid-June 2020 for approximately 15 months.
"The total closure of the hotel," he added, "will minimise the operating loss, plus the opportunity cost of doing a phased renovation," he added.
Chung said that with the total closure of the hotel, all employees, estimated to exceed 200, will be offered the VSS as a gesture of goodwill from the company.
He said the last day of employment for the staff will be June 8, and town-hall sessions on the hotel's closure and VSS will be held on May 18.
"We strongly encourage you to take up this VSS, which is significantly better for most unionised employees, compared to retrenchment, as stipulated in the Collective Agreement/notice period stated in the employment letter for management staff," Chung added.
The 46-year old hotel, which boasts over 400 rooms, is owned and operated by Singapore-listed property firm UOL Group Ltd, which owns and operates the ParkRoyal and Pan Pacific brands.
In Malaysia, UOL reportedly also owns the 30-year old Parkroyal Penang Resort in Batu Ferringhi on Penang Island.