MANILA—Another hotel that is hit hard by the COVID-19 pandemic, which has closed countless businesses due to extended lockdowns and halting economic activity.
is the Makati Shangri-La.
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 reorganisation 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 Philippine Hotel Owners Association President Arthur Lopez, 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 Philippines has been under lockdown for 10 months, with many businesses still not operating at full capacity.
Below is the full statement from Shangri-La Group:
Throughout the unprecedented COVID-19 pandemic, our priority has been to preserve many jobs possible for our teams.
To mitigate the financial impact brought about by the pandemic, multiple cost management initiatives have been implemented including salary reductions at management level, implementing shorter work weeks, hiring freeze and cuts in non-essential spending.
At the same time, for the past 10 months, we have provided assistance for our rank and file to help them through these challenging times.
Despite our best efforts, the prolonged recovery timeline has resulted in increasing financial pressure on the company here in the Philippines.
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.
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.
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 that 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 assistane to help them get back on their feet.
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 part of.
We continue to vigilantly monitor local and global development and look forward to reopening Makati Shangri-La Manila at a later date when business conditions have improved. (ED)