GEORGE TOWN, Jan 25 — The five-star Hotel Equatorial Penang is set to close down effective March 31 this year.

In an internal circular to employees, general manager Alan Ong said the directors of the hotel made the announcement of closure today due to the adverse business conditions caused by Covid-19.

He wrote that the last day of business to the public is yet to be decided but it will be before March 31.

"Until we officially cease operations, all of you shall remain as employees of the hotel and we remain committed to upkeep the strong heritage and name of Hotel Equatorial Penang,” Ong said in the letter with today’s date.

Ong said the company has suffered huge losses but will still pay severance benefits to hotel employees, the details of which will be announced later.

He said the company will strive to meet all obligations in accordance with the terms and conditions of employment for all employees.

A hotel employee, when contacted, confirmed receiving the letter from Ong today.

The hotel, which is about 30 years old, is located 250 feet above sea level at the southwest district of the island near to the industrial zones and the Penang International Airport.

It is a convention resort with 413 guest rooms catered primarily to business travellers, meetings, banquets and conventions. It has two large column-free ballrooms that can accommodate up to 2,600 people and 21 function rooms.