The Trump International Hotel in Vancouver is closing due to the operator filing for bankruptcy, only three years after the establishment opened amid widespread opposition.
The operator TA Hotel Management Ltd. Partnership filed for bankruptcy late last week, owing $4.79 million and holding total assets of $1.1 million, according to records from the Office of the Superintendent of Bankruptcy Canada.
“Its ongoing expenses since the outbreak of COVID-19 and lack of revenue has placed TAHMLP into a position of insolvency,” the operator said in its website, as quoted by Reuters.
The 69-storey hotel was initially shut down on April 4 due to the COVID-19 pandemic, but staff said that the business is no longer accepting bookings due to permanent closure.
With the coronavirus pandemic continuing to wreak havoc across all industries, a significant number of Canadian commercial ventures are considering “further staffing actions, closure, or bankruptcy” within six months due to declining sustainability, according to a recent Statistics Canada survey.
Around 20% of businesses said that they will have to shut down in half a year, taking their current operational expenses into account. StatsCan said that approximately 33% of businesses saw their revenues drop by more than 50% annually, while nearly 40% cut their working hours and 28% downsized their workforces.
Another report by Colliers International found that 10% of retail tenants will be terminating their leases in the very near future.
“We expect the trend around permanent closures to increase given the slow recovery in consumer demand and limitations created by physical distancing,” said Jane Domenico, senior vice president at Colliers Canada.