Luxury hotel Makati Shangri-La is temporarily closing its doors and laying off employees, as the coronavirus pandemic has dragged on for almost a year.

The temporary closure begins on February 1.

In a statement on Wednesday, January 20, the Shangri-La Group said the prolonged pandemic “resulted in increasing financial pressure on the company.”

With few to no room bookings and events, the hotel tried to cushion the financial impact of the pandemic through reductions of managers’ salaries, shortened work weeks, and limits on non-essential spending.

Despite these efforts, the 5-star hotel said it must make the “extremely difficult decision” to lay off workers. It did not specify how many workers would be affected.

“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 December 31, 2021, to provide affected employees and their families peace of mind during these uncertain times,” the Shangri-La Group said.

“We are also providing colleagues with career transition assistance to help them get back on their feet.”

The hotel first opened its doors in 1993 and has since been recognized as among the landmarks of the Makati City business district.

The hotel industry is among the hardest hit by the pandemic.

In May 2020, 5-star hotel Marco Polo in Davao City closed due to the financial crunch. – Rappler.com