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TA Global halts operations of six hotels due to Covid-19

KUALA LUMPUR (April 14): The outbreak of Covid-19 has prompted real estate developer TA Global Bhd to temporarily close six of its hotels. 

They include Aava Malacca Hotel, which suspended operations since March 19 after the government imposed the Movement Control Order, the group said in a filing yesterday.

The other hotels are located outside Malaysia — two in Thailand, two in Canada and one in Australia.

The Four Points by Sheraton Bangkok and Movenpick Resort and Spa Karon Beach in Phuket were closed on April 2 and April 1, respectively, due to the mandatory closure of F&B outlets and lockdowns imposed by the two local authorities.

TA Global said its two hotels in Canada were also closing down temporarily until further notice due to the mandatory closure of all F&B outlets, and also due to business disruption from travel restrictions, closure of the Canada-US border to all non-essential travel and the Canadian government’s ban on air travel into Canada by foreign nationals. 

The AAVA Whistler Hotel in Whistler was closed on March 25 and Trump International Hotel & Tower Vancouver was closed on April 4.

Over in Australia, Radisson Plaza BLU in Sydney was closed on March 27 until further notice, also due to mandatory closure of all F&B outlets as well as a travel ban, closure of borders and entry restriction for non-residents and non-citizens.

During the temporary closure period, TA Global said it will prudently implement cost-control measures and continue to closely monitor the daily developments in the Covid-19 situation in each of the cities with a view of recommencing operations.

“Given the current evolving circumstances of Covid-19 in various countries, it is not possible for the company to quantify or determine the extent of the impact on the group’s hospitality business and financial position,” it said. 

“However, this temporary closure is expected to reduce the net cash flow generated by the hotel division in 2020. Nevertheless, the company will undertake appropriate measures to mitigate the current situation and hope that business will return to normalcy by the last quarter of 2020,” it added. 

TA Global's shares ended unchanged at 24 sen yesterday, giving the group a market capitalisation of RM1.28 billion. Some 671,600 shares were traded.

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