By Marina Emmanuel

Holiday Inn Resort in Batu Ferringhi will close by June 30.- Pic source: Facebook/HolidayInnResortPenang

GEORGE TOWN: The list of hotel closures in Penang continues to increase with the latest casualty being the iconic Holiday Inn Resort.

Hong Kong-based Harilela Group – via Asia Garden Sdn Bhd – announced that it will close the property which it had been operating for over four decades in Batu Ferringhi by June 30.

“As you are aware, the company has carried out extensive cost management measures since Covid-19 was declared a global pandemic on March 11.

“It has had many implications around the world with the travel, hotel and leisure sectors being particularly impacted and our hotel is no different,” Asia Garden manager Jeff Yap, said in a message to the hotel’s associates sighted by the New Straits Times.

The four-star family resort has two buildings along Penang’s tourism belt, one which faces the sea and the other across the street from it and backed by the hills.

Yap said after monitoring the market and prospects of their business, the matter was further deliberated as Malaysia moved into the Recovery Movement Control Order (RMCO) phase.

“After extensive consideration, it is with regret that we advise that our hotel will cease operations from June 30,” he said.

“This has been an extremely difficult decision for our owners who have been committed to Penang for over 40 years.

“The magnitude of this crisis has proven to be overwhelming and the continuation of business is no longer a viable proposition,” Lee added.

He ended his message without giving any indication to employees on severance entitlements or benefits.

“We thank you for your service with us and we wish you well in your future undertakings and that you stay safe in this challenging period,” he noted.

Established in 1959 and wholly-owned by the Harilela family, The Harilela Group is a private company with extensive experience in hotel development and management.

On its website, the group is said to currently own and operate some 15 properties across Hong Kong, China, the Far East, Europe and the US.

One new property in Hong Kong is said to be opening this year.