AUSTRALIA’S most popular hotel in South-East Asia has been accused of “discrimination” for allowing “black” and “Asian” guests to stay in its rooms.

Key points:The owners of the hotel in south-east Asia say they are ‘extremely disappointed’The hotel says the issue was raised with management in September last year, but no action was takenIt says the decision was made in an effort to protect the integrity of its businessThe owners say the decision is “extremely disappointing” because it comes as the company’s business is “at risk” of going under.

The owners, in the resort city of Kota Kinabalu, say they were informed in September that they were in breach of the company policy of not allowing guests from racial, ethnic or religious groups.

“The management of the Hotel Kota said they had asked us to review the policies but were not informed of any such policy,” they said in a statement.

“We are extremely disappointed that our business is at risk and have asked for an explanation from the management.”

Our company is a proud member of the South-east Asian Association of Hotel and Resorts (SEAAR) and we have been working closely with SEAAR and other organisations for the past two years to protect our business and protect our reputation.

“However, we were never informed of the issues that led to our management being asked to review policies on how guests are allowed to stay at the Hotel and that they did not take action to correct the situation.”

The statement said the hotel had been told in September 2017 that it was in breach and asked for further information about the situation.

“A further email from the hotel was sent on October 5 and no action has been taken by the management,” it said.

“If this is the case, we are extremely concerned and we urge the management to provide further information to us so that we can take appropriate action.”

As an SA based company, we must be able to make informed decisions to operate in our territory and have a sustainable business.

“To that end, we request that the management review our policies and processes so that they are in place to ensure that our customers are treated with dignity and respect.”

The owners said they were “extremely disappointed” by the decision and would consider legal action against the hotel.

The South-Eastern Asia Tourism Development Council (SEAATD), which represents hotels and resorts across the region, said it was “extremely concerned” at the decision.

“This is unacceptable and an abuse of trust and it is also a breach of their duty to their guests,” the group said in an emailed statement.

“This is a breach in their responsibility to their clients.”

The association says there are approximately 400 hotels in the region with more than 3,500 guest rooms.

The company has been operating in South East Asia since 2008.

The Kota Hotel was built in 2006 by the former Japanese company Nippon Shimbun.