A staff member at the hotel told RTHK on Sunday that the hotel’s operations had been halted on Saturday and affected customers had been notified.
Tourism sector lawmaker Yiu Si-wing said the hotel, a subsidiary of Sino Group, had not folded.
He quoted the Federation of Hong Kong Hotel Owners as saying that a company has rented the property for its staff.
The hotel was one of 140 hotels that took part in the Tourism Board’s staycation discount promotion. The board said Island Pacific Hotel had now been removed from the list, adding that no one had booked a stay at the hotel via the scheme.
Hong Kong residents who spend HK$800 at restaurants or shops can enjoy a HK$500 discount when they book a staycation at selected local hotels.