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GL Limited to 'progressively' close hotels as Covid-19 hits bookings
HOSPITALITY group GL Limited announced on Tuesday that the hotels under its hospitality subsidiary GLH will “progressively be closed temporarily” amid the Covid-19 outbreak, with the exception of a few to serve the needs of some guests.
The spread of the virus to Europe and the United Kingdom has caused “significant reduction in bookings and increase in cancellations”.
The pending closures were also prompted by the call from the UK government to practise social distancing and to halt activities.
While the extent on the group's operations and financial performance for the full year ending June 30, 2020 cannot be determined, it noted that its financial results “will be significantly and adversely impacted” compared to the previous financial year on the back of uncertainty surrounding Covid-19 and low oil prices.
Meanwhile, it has also implemented measures such as cost reduction initiatives and temporarily deferring capital projects which are not critical in order to preserve working capital and liquidity.
Shares of GL closed flat at S$0.50 on Tuesday.