The four-star Sheraton Hotel in Sandakan, Sabah, is to shutter its operations soon.
While Covid-19 was not cited as a reason for the impending closure, it has been stated that it was due to a sharp decline in products and services in the hospitality industry.
The hotel’s general manager David Scully in a letter to his employees said the services of all the hotel’s staff will be terminated with effect from May 31.
“This termination has nothing to do with the performance of individual employees,” he said in the letter sighted by the New Straits Times.
Scully said prior to the decision to close down the hotel, the management had explored many alternative avenues to reduce financial losses and this included terminating the services of its contract workers.
“Sadly, these efforts did not reduce the financial strain on the company, and we are left with no choice but to terminate all our employees and close the hotel,” he said.
Four Points by Sheraton Sandakan boasts 299 rooms and is situated on Sandakan’s waterfront overlooking the Sandakan Bay.
Meanwhile, Scully also said that all renumeration and termination benefits will be made out to the affected employees based on Sabah’s labour laws.
“We ask that you return all company property to the Human Resources Department.
“The hotel is obliged to withhold any payments being owed to you in the event that the said property is not returned,” he added.