MANILA (UPDATE) - Shangri-La will be closing its hotel branch in Makati on February 1 as the hotel industry continues to reel from the disruptions caused by the COVID-19 pandemic, the hotel operator said in a statement on Wednesday.
The hotel operator said it looks forward to reopening Makati Shangri-La, Manila at a later date “when business conditions have improved.”
The hotel operator said it decided to close its 5-star luxury hotel and resort in Makati due to continued low business levels and an uncertain business environment.
Shangri-La said it has already tried managing costs by implementing salary reductions at the management level, shorter workweeks, hiring freeze and cuts in non-essential spending.
For the past 10 months, it also provided assistance to its rank and file to help them through the challenging times, the company added.
“Despite our best efforts, the prolonged recovery timeline has resulted in increasing financial pressure on the company here in the Philippines,” the company said.
“As part of the reorganization exercise, we will sadly be parting ways with a number of colleagues and we will be temporarily closing Makati Shangri-La, Manila,” the statement said.
To cushion the impact of the reorganization, Shangri-La said it will provide affected employees with a compensation package that is higher than local guidelines, and extend them healthcare coverage and grocery support until the end of the year.
“We are also providing colleagues with career transition assistance to help them get back on their feet,” Shangri-La said.
Shangri-La did not provide details on the number of workers affected by the closure of its Makati branch, but said that the retrenched employees will be given priority in rehiring in case the hotel resort reopens.
“Should suitable job opportunities open up in the future, we would certainly look to welcome our alumni back,” the company said.
Besides its Makati branch, Shangri-La also operates Edsa Shangri-La in Ortigas Centre, Mandaluyong City, Manila Shangri-La at the Fort in Taguig City, the Shangri-La Boracay Resort and Spa, and Shangri-La Mactan Resort and Spa in Cebu.
“Across the Philippines, we are looking at various ways to manage our costs due to continued low business levels as the pandemic’s severe impact continues to drag on.”
The Department of Tourism meanwhile said it is saddened by the closure of Makati Shangri-La, but hopes that it will soon reopen its doors to international and domestic clients.