Keck Seng’s US, Canada hotels close temporarily due to COVID-19 lockdowns

KUALA LUMPUR (April 1): Palm oil and property player Keck Seng (Malaysia) Bhd (KSM) said its hotel operations located in the US and Canada have temporarily closed, following the enforcement of citywide lockdowns.

“In line with the directive, the operations of DoubleTree by Hilton Hotel Alana – Waikiki Beach (Hawaii), SpringHill Suites New York Midtown Manhattan (New York) and Delta Hotels by Marriott Toronto Airport and Conference Centre (Toronto) are temporarily suspended until further notice,” it said.

Back home, KSM said its Tanjong Puteri Golf Resort in Johor was also affected, but it will continue to service guests who were staying at the resort prior to the Movement Control Order (MCO) imposed by the Government.

However, all non-essential resort services and facilities have been suspended in accordance with the MCO.

In a Bursa filing, the group said it is currently unknown when operations will resume and forecasts that its hotels and resort division may require financial support from the group following its reduced earnings.

“The rapid development and fluidity of this situation precludes any prediction as to its ultimate impact, which will have a continued adverse effect on economic and market conditions and trigger a period of global economic slowdown.

“Given the evolving circumstances, it is not possible for the Company to quantify or determine the extent of the impact on its business and financial position. The company will undertake appropriate measures to mitigate the impact from the current situation and any developments.

Shares in Keck Seng closed down 7 sen or 1.96% at RM3.50, giving it a total market capitalisation of RM1.26 billion.

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