Hotel Royal Ltd. plans to cease operations at its hotel in Penang, Malaysia, as part of a group restructuring exercise, the hotel operator said in a filing to SGX Thursday.
The hotel will be undergoing a full retrenchment exercise, with a restructuring cost of around 2.5 million ringgit, or around S$800,000, which will be funded via internal resources, Hotel Royal said in a filing to SGX.
The hotel’s closure is expected to result in an annual savings of 4 million ringgit, or around S$1.3 million, in payroll and operating costs in 2022, the filing said.
According to Hotel Royal’s website, the Penang property, Hotel Royal Penang, is located at 3 Jalan Laut, Georgetown, and has a land area of around 3,495 square meters and 281 guest rooms.
The company holds three other Malaysia hotels, with two in Kuala Lumpur and one in Melaka, according to its website.
Hotel Royal has two hotels in Singapore and two in Thailand, in addition to investment properties located in Singapore, Malaysia and New Zealand, the website said.