TAIPEI (Taiwan News) - Leofoo Tourism Group (六福旅遊集團) announced Tuesday that it would close the Westin Taipei by the end of the year as the commercial landlord gave notice of the end of leases after 2018.

The group CEO Lulu Chuang (莊豐如) shed tears when announcing the news at a press event Tuesday, saying that the rent has soared year by year over the past 20 years and has dampened the profit margin of the hotel. The female CEO said the five-star hotel has been seeking a new location to restart operations but to no avail.

Leofoo Group operates the Westin Taipei (台北威斯汀六福皇宮), the Courtyard by Marriott Taipei (六福萬怡), Leofoo Hotel (六福客棧), Leofoo Residences (六福居), Leofoo Resort Ghuanshi (關西六福), Leofoo Village Theme Park (六福村), Leofoo Water Park and two other brands: Elite Concept, which provides party and event services, and Elite Bakery, according to its website.

Cathay Life Insurance, the owner of the building, was said to have ended the lease to make way for plans for the property. Media reports said that the property is likely to be transformed into a new hotel under the brand name of Humble House, which and Cathay Life Insurance belong to the same family. The media rumor was quickly dismissed by Humble House that same day.

Early media reports state that the Leofoo group is seeking to restructure its finances in the hope of returning to profitability next year.

According to an Upmedia report, Chuang is the third generation of the Leofoo family business and has taken the leadership role for 14 years.

The Westin Taipei was launched in 1999 and the hotel occupancy rate as a percentage of rooms booked for a night hits 70 percent in average, outperforming its peers. The hotel's annual income reportedly reaches approximately NT$1.3 billion a year, but reported loss of NT$0.24 billion last year, 2017, on high rental costs.

Cathay Life Insurance issued a statement on Wednesday to deny the alleged "year-on-year rent increase" as said by some media reports, stating the company even cut rents twice in 2004 and 2009 to reduce the hotel's financial burden.