Demolition Of Hotel Labuan Set To Begin After Decades Of Abandonment

LABUAN, Sept 11 (Bernama) -- The island’s oldest and once most iconic landmark, Hotel Labuan is finally set for demolition after standing derelict for nearly three decades.

The 10-storey building, once a 150-room establishment owned by former Sabah Chief Minister Tan Sri Harris Salleh, was declared structurally unsafe and closed in November 1997 due to structural unsoundness. 

Since then, it has remained abandoned in the heart of town, becoming an eyesore as years of demolition delays followed.

Labuan Corporation (LC) chief executive officer Mohd Sukuran Taib confirmed the long-awaited demolition works will now proceed after a tender was successfully issued in March this year. 

He said contractors have been mobilised and initial preparations at the site are already underway.

“Hotel Labuan has been left idle for too long and posed safety risks to the public. With demolition now moving forward, we can pave the way for new development opportunities that better serve the community,” he told Bernama today.

He said efforts by LC over the years to secure a developer for the site did not materialise, leaving the building to decay further. 

For many long-time residents, the announcement marks a bittersweet moment as the hotel once served as a hub for social gatherings, business events, and visits by dignitaries.

“The removal of the hotel highlights the balance Labuan faces between preserving historical identity and advancing modern development. 

“Although the future use of the land has yet to be disclosed, observers note that redevelopment is likely to align with Labuan’s ambitions as a financial, tourism, and logistics hub,” said a 65 year-old retiree, Mustafa Ali Abidin.

He said with the demolition, one of Labuan’s last visible symbols of its early urban era would soon vanish from the landscape, leaving behind only memories and photographs of its once-prominent role in the island’s history.

--BERNAMA