Makati Shangri-La is the latest hotel hit hard by the COVID-19 pandemic, which has closed countless businesses due to extended lockdowns and halting economic activity.
In a letter obtained by Summit Media, Shangri-La Group's Vice President of Operations (Philippines) John Rice stated that the almost 30-year-old hotel will be temporarily closing its doors, but could reopen at a later date.
"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 from 1 February 2021 onwards," wrote Rice.
The letter, addressed to Arthur Lopez, president of the Philippine Hotel Owners Association, referred to the move as a decision to "reorganize the workforce."
According to Rice, the property might reopen at a later date when "business conditions have improved."
"Despite our best efforts, the prolonged recovery timeline has resulted in increasing financial pressure on the company here in the Philippines," wrote Rice.
The letter refers to only Makati Shangri-La's temporary closure. The Shangri-La branches in BGC and Shaw are still open.
In an official statement from the Shangri-La Group, the company will now be focusing on assisting its retrenched workers affected by its temporary closure.
"Our employees take tremendous pride in their work and we greatly value their hard work, dedication, and contributions. Every effort is being made to support all our affected colleagues through this transition, including providing a fair compensation package that is higher than local statutory guidelines and extending healthcare coverage and grocery support until 31 December 2021 to provide affected employees and their families peace of mind during these uncertain times. We are also providing colleagues with career transition assistance to help them get back on their feet," said the statement.
The Philippines has been under lockdown for 10 months, with many businesses still not operating at full capacity.
