Hong Kong's famous Jumbo floating restaurant, known for its luxurious dining rooms and lights, sank Sunday in the South China Sea, the company that owns it announced.

The Jumbo Floating Restaurant - or Jumbo Kingdom - had been towed last week after it closed during the covid-19 pandemic.

According to Aberdeen Restaurant Enterprises, the vessel was hit by adverse weather conditions and sank near the Paracel Islands, adding that no crew members were injured.

The 260-meter-long, three-story ship was moored for 46 years in Hong Kong waters and hosted "numerous dignitaries and international celebrities," including the Queen of England Elizabeth II and American actor Tom Cruise.

The sinking comes after Aberdeen Restaurant Enterprises said it could no longer afford the maintenance costs.

However, the head of the Hong Kong government, Carrie Lam, rejected the calls for temporary financial relief.

"We have clearly indicated that the government has no plans to invest money in the restaurant operation (...), said Carrie Lam.

Even before the pandemic, the restaurant, which served Cantonese food, was running up debts, but the ban on tourists to stem the spread of the SARS-CoV-2 virus hit Jumbo and other attractions in Hong Kong.