In an email to guests booked to stay there, the management company, Allamanda Hotel Ltd (AHL), stated, "Please be informed … that, after operating the hotel … for over 20 years, Allamanda Laguna Phuket hotel is closing its doors...
"Due to unforeseen circumstances it no longer can sustain as a 4-star hotel
"It is with great sadness we have to cancel all the confirmed reservations made without any prepayment. "
General manager Femke Beekers today confirmed the hotel will close.
She told The Phuket News, "Allamanda Laguna Phuket will close as a hotel at end of July. We were unable to continue operating certain areas [of the hotel], which [has] made it impossible for us to remain competitive.
"AHL will try to arrange alternative accommodation for people who have already booked."
Completed in 1993, the complex has three phases. Phases 2 and 3, comprising 141 units, were run as a hotel.
Initially this was managed by Laguna Resorts and Hotels, and then by Best Western, but in 2009 the condo owners set up AHL to run it as a hotel so that owners who did not live there full-time could receive income from their units.
The Phuket News understands that owners of Phase 1 declined to allow the continued use of part of their premises by AHL, rendering the hotel unviable.
Owners of Phase 1 could not immediately be reached for comment as to why this decision was taken.