Daily Express Subscriber
Sign in to your account.

LABUAN: The once-proud Hotel Labuan, a lasting symbol of legacy from the tenure of former Sabah Chief Minister Tan Sri Harris Salleh, has been reduced to rubble after standing for nearly four decades. 

The 10-storey hotel, which had been closed and deteriorating for 28 years, was brought down by excavators that worked tirelessly from the roof downwards since last August.

The building, which boasted 150 rooms and a swimming pool, was demolished by a Perlis-registered company that outbid approximately a dozen other contractors.

The company was awarded the demolition contract, which had an estimated value of RM5.4 million, after the Labuan Corporation put out a call for bids.

Previous attempts to lease the site for private investment had failed to attract interest.

Hotel Labuan, which began operations in the late 1970s, was initially developed at a cost of RM14 million. At its peak, it was one of the island’s most prominent landmarks, offering both local and international guests a place to stay, dine, and socialize. 

However, the hotel closed its doors in the late 1990s due to claims by local authorities that it was structurally unsound. Harris, who owned the hotel, challenged the decision in court.

The matter was later settled out of court, with Harris reportedly receiving over RM30 million in compensation. Following the settlement, the property was transferred to government ownership.

Though Hotel Labuan has now disappeared from the skyline, the memories it created will endure for many, particularly among those who frequented the establishment during its heydays.

For Labuan resident Bryan Tan, the hotel was once a vibrant social hub. 

“In my 20s, spending time at the hotel was the best part of life. You could meet unexpected friends, enjoy great entertainment, and experience the island’s social pulse.

The food was fantastic, and the atmosphere was electric—people would stay until the wee hours, all under one roof. Many will miss that vibe,” said Tan.

The future of the prime site where the hotel once stood remains uncertain. Bryan Tan expressed hope that whatever is developed there next will be meaningful and could help revitalize Labuan’s tourism industry.