Due to heavy debt and defaulting on employee salaries, Shenzhen XiangMiHu Dongzuo Hotel has been sealed by the local court.
The sealing of the hotel reportedly resulted from the hotel employees' request for payment of past salaries. According to some residents who live near to the hotel, over 100 staff of the hotel went on strike on March 20 and some of them even threatened the hotel management that they would attack the building if they were not paid. Although the employees were later appeased by the intercession of the police and the local government, the hotel has been shut down since then.
Staff from XiangMiHu Dongzuo Hotel told local media that the hotel was contracted to a person surnamed Sun, but this person vanished several months ago after the hotel lost lots of money. There are over one hundred employees in the hotel, and some had not been paid in six months.