The Makati Shangri-La will be closing temporarily starting February 2021 due to financial challenges brought about by the COVID-19 pandemic.
The five-star hotel informed the Philippine Hotel Owners Association of the move in a letter Wednesday.
"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 from 1 February 2021 onwards," the hotel said in the letter, a copy of which was obtained by Summit Media.
It said the "prolonged recovery timeline" has resulted in "increasing financial pressure" on its business in the Philippines, noting that its workforce in the country would be reorganized.
Makati Shangri-La will be reopened “at a later date when business conditions have improved," it added.
In a statement, Makati Shangri-La said it would provide workers with a “fair compensation package,” that is higher than required and would extend healthcare coverage and grocery support until the end of the year.
“We are also providing colleagues with career transition assistance to help them get back on their feet,” it said.
Shangri-La's other hotels in the Philippines are located along EDSA-Mandaluyong, The Fort in Taguig City, and Mactan in Cebu.
Recognizing Makati Shangri-La as a pillar in local tourism, the Department of Tourism said it hopes that the hotel would soon reopen its doors to local and foreign clientele.
"The Department of Tourism is saddened by the news of the management decision to temporarily close the operations starting February 1, 2021 of Makati Shangrila Hotel," the tourism department said.
"The hotel has been a pillar in the tourism industry in the country and has contributed to positioning the country in the region and around the globe. Nevertheless, we are hopeful that Shangrila Makati Hotel will soon reopen its doors to international and domestic clients," it added.
The tourism industry, including hotels, was among the heaviest affected by the COVID-19 pandemic as nations enforced lockdowns and strict social distancing measures.
Opened in 1993, Makati Shangri-La is located at the center of the country's business district and is a known favorite by both business and leisure travelers.
Through the years, the luxury hotel has received numerous accolades from local and international award-giving bodies.