Hotel Equatorial in Penang will cease operations by March 31, 2021.
According to EdgeProp, the five-star hotel said in an internal memo that it was a "very sad and difficult decision".
The last day of business has yet to be decided and the hotel also committed to paying severance benefits to its employees despite suffering huge losses due to Covid-19, according to the memo.
The memo was signed off by the general manager, Alan HC Ong.
According to Free Malaysia Today, a hotel spokesperson said that the discussion over closure is still ongoing and the hotel will make an official announcement once a decision is made.
Hotel Equatorial Penang, which has been operating for around 30 years, was built for large-scale gatherings such as banquets and conventions.
It has the largest ballroom on Penang island that can accommodate up to 2,600.
According to The Star, three hotels in Penang have shut down last year due to Covid-19.
Top photo by Hotel Equatorial Penang