Makati Shangri-La temporarily closing starting Feb. 1

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  • The hotel’s management cites “low business levels” behind its “extremely difficult decision to reorganize (its) workforce and operations in the Philippines”

Five-star hotel Makati Shangri-La will be temporarily closing its doors starting  Feb. 1.

After 27 years of operation, the hotel will also let go of some of its employees, citing “low business levels” for its temporary shutdown.

In a statement, a hotel spokesperson said, “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.”

According to the spokesperson, the company had already done multiple cost management initiatives to mitigate the financial impact brought about by the pandemic including salary reductions at management level, implementing shorter work weeks, hiring freeze, and cuts in non-essential spending prior to arriving at this decision.

However, the same representative was quick to point out that this closure is temporary and that the hotel management and staff  “look forward to reopening at a later date when business conditions have improved.”

What happens to its affected employees?

Its retrenched employees, the company assured, will be provided support, including a fair compensation package that is higher than that provided by local statutory guidelines and will extend healthcare coverage and grocery support for them until Dec. 31. “We are also providing colleagues with career transition assistance to help them get back on their feet,” the company added.

In June last year, the hotel chain denied rumors that its entire Philippine operation was  closing down due to the economic effects of the pandemic.

Makati Shangri-La, Manila is one of six hotel chains that comprise the Shangri-La Group’s roster of hospitality brands in the country.

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