The Covid-19 pandemic is said to have accelerated plans to close Hotel Istana.
Insiders familiar with the operations of the 29-year-old hotel said the building maintenance was getting too costly and that it was losing out to its newer, and swankier competitors nearby.
Tucked in the heart of the Golden Triangle, Hotel Istana is owned by Tradewinds Hospitality – a subsidiary of Tradewinds Corporation Bhd. The company also manages several other hotels, including The Danna Langkawi, Mutiara Johor Bahru, and Petaling Jaya Hilton.
“Plans to cease operations and in fact, demolish the hotel, surfaced even before the pandemic hit Malaysia,” said an insider.
“Several options were discussed as the hotel was getting old and maintaining it, like the hotel’s boiler room, was getting expensive. There were plans to demolish it and build something else altogether or getting into a joint venture agreement with a third party who would be interested in running the hotel.
“But the pandemic accelerated those plans.”
The insider added that the hotel had lost its charm, compared to the other hotels nearby.
Hotel Istana, when contacted by Twentytwo13, confirmed that it would cease operations but refused to comment further.
The hotel, had a in a letter that has been widely circulated, said the management is “incurring monthly operational losses” and “will be offering the employees a Voluntary Separation Scheme.”
The hotel was launched by former Prime Minister Tun Dr Mahathir Mohamad in 1992.
The 486-room hotel, located at Jalan Raja Chulan, currently serves as a quarantine hotel for those entering into Malaysia from abroad.
The hospitality industry has been hit especially hard, following the various lockdowns enforced in Malaysia since March 2020, brought on by the pandemic. Borders have remained closed and inter-state travel has been restricted for most of the duration.
