Due to the situation of the pandemic in the country, businesses big and small are facing difficulties to keep running.

Even big hotels are forced to close down - and sadly, we can soon add one more into the list.

'Left with no choice'

One of the most iconic hotels in Kuala Lumpur, Hotel Istana, will cease operations beginning 1 September, Malay Mail reported.

The news portal managed to verify a circular released by the hotel’s management on the matter.

In the circular, Hotel Istana general manager Nooradzzudin Omar said a voluntary separation scheme would be offered to its affected workers.

"We have arrived at this decision after considering the present circumstances and all available options. We are left with little choice other than to proceed with this closure.

“Many of you will be aware that our competitive advantage has declined over a period of time in the face of stringent competition from our neighbouring hotels and service apartments. The situation has now been aggravated by the COVID-19 pandemic which has and continues to impact our industry and its ability to achieve normality.

Nooradzzudin said in the circular that the pandemic has badly impacted their business, rates, returns and occupancy despite their best efforts.

Even as a quarantine hotel, Hotel Istana are incurring monthly operational losses.

"As such after a proper evaluation of the hotel and its viability, we have decided to cease operations,” he said in the circular.

This is definitely sad news for Hotel Istana, as it has been in operation since 1992 and was launched by former prime Tun Dr Mahathir Mohamad.

Let's hope that their workers can bounce back soon.