Makati Shangri-La, which has been operating for 30 years, will temporarily cease operations starting February 1, 2021.
The closure is due to uncertain business conditions, the premier hotel said.
Makati Shangri-La is located at the heart of the Makati business district along Ayala Avenue.
“Despite our best efforts, the prolonged recovery timeline has resulted in increasing financial pressure on the company here in the Philippines,” the hotel said in a statement as per a report by Manila Bulletin.
“Owing to continued low business levels and having considered all viable options over weeks of consideration and deliberation, we unfortunately must now make the extremely difficult decision to reorganize our workforce and operations in the Philippines as we continue to navigate an uncertain business environment.”
A number of their employees will be displaced during the temporary closure.
The hotel assured that displaced employees will be provided support through the transition, such as providing a fair compensation package that is higher than local statutory guidelines, and extending healthcare coverage and grocery support until December 31, 2021.
The hotel chain also vowed to provide career transition assistance to help the affected workers get back on their feet.
The hotel said it has endured challenging times for the past 10 months to preserve as many jobs as possible, and provided assistance to get through the impact of the pandemic.
The hotel will retain a small core team to maintain and upkeep the hotel and its grounds.
“We greatly value their hard work, dedication, and contributions. For close to 30 years, the Shangri-La Group has enjoyed strong support here in the Philippines. We are grateful for this and would like to assure everyone we remain deeply committed to our presence here in the market, and to the communities we are a part of. We continue to vigilantly monitor local and global developments and look forward to reopening of Makati Shangri-La, Manila at a later date when business conditions have improved,” the statement concluded. (CC)