The historic hotel "Macedonia Palace" in the northern city of Thessaloniki will cease operating on December 27, 2011, as was revealed by the tourist enterprise company that has assumed its management over the past 15 years.

"After thanking you for our excellent cooperation all these years, we would like to inform you that our company is stopping operating the hotel 'Macedonia Palace', on 27/12/2011. We remain at your disposal for any clarificatin," the announcement said.

The hotel has 120 employees who are following developments with concern.