Makati Shangri-la, the Philippines foremost five-star business hotel located at the heart of the Makati business district along Ayala Avenue, today announced an indefinite closure of their 30-year operation due to uncertain business condition.

“Despite our best efforts, the prolonged recovery timeline has resulted in increasing financial

pressure on the company here in the Philippines,” said Makati Shangri-la in a statement. The hotel is expected to close its doors on February 1, 2021.

“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.”

It added that a number of their employees will be displaced as the hotel will temporarily close its operations.

        The hotel said that that for past 10 months they endured challenging times to preserve as many jobs as possible, and provided assistance to its rank and file to get through the impact of the pandemic.

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.The hotel cited its employees for taking tremendous pride in their work stating, “We greatly value their hard work, dedication, and contributions.”

Affected employees will be provided support through the 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. The hotel chain also vowed to providing colleagues with career transition assistance 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 are a part of. We continue to vigilantly monitor local and global developments and look forward to reopening Makati Shangri-La, Manila at a later date when business conditions have improved,” the statement concluded.

In a phone interview hotel spokesperson Mica Cordero said that among the Shangri-la hotels in the Philippines, only Makati Shangri-la is closing its operations. The luxury Shangri-la hotel chain brand operates five-star hotels At the Fort – Bonifacio Global City,  EDSA, Mactan and Boracay. Cordero said that there is no definite timelines for, but said the indefinite closure will all depend on market conditions as travel still remains restricted. 

Rumors of Makati Shangri-la hotel closure surfaced in June last year amid strict lockdown protocols imposed by the Duterte administration due to the COVID-19 pandemic.

The Shangri-la Hotel chain in the Philippines denied  such rumor. At that time, Shangrila-la Makati told Manila Bulletin that they were operating according to the health and safety protocols of the government during the Enhanced Community Quarantine.

During the strict quarantine period, the hotel said were hosting overseas Filipino workers, embassy officials and their foreign nationals, and BPO personnel. Their kitchen was also open and they accepted delivery and take out.

Source: Manila Bulletin (