Is The Peninsula Manila in Trouble?
The five-star hotel says no.
(SPOT.ph) The ongoing pandemic has taken a toll on the Philippines' tourism industry, forcing tour operators and hotels to permamently shutter their doors following suspension of operations since March. So far, some well-known hotel and travel brands that had to close down are Marco Polo Davao and Sun Cruises Inc. Is another five-star hotel soon to bite the dust? The Philippine Star on September 25 reported: "It looks like the Pen is also headed for the wrecker's ball," pertaining to the five-star luxury hotel The Peninsula Manila located in Makati City.
The article by Victor C. Agustin said that The Hongkong and Shanghai Hotels, Limited—Hong Kong parent of The Peninsula Manila—"has written off its investment in the local luxury hotel." They quoted a report supposedly distributed to Peninsula shareholders in August: "In view of the relatively short remaining lease term, combined with the severe economic slowdown from the pandemic, a review has been conducted by management and an independent valuer." The board, according to them, "wrote down the hotel's value resulting in an impairment provision of H.K.$93 million."
SPOT.ph reached out on Friday afternoon to The Peninsula Manila, which then posted this statement on their website:
On Friday 25 September, The Philippine Star published an incorrect and completely misleading headline and story claiming that The Hongkong and Shanghai Hotels was “writing off” The Peninsula Manila. The newspaper has misunderstood an accounting term of “writing down” the value of the hotel which was published in our group annual report. We have asked the publication for a correction. HSH remains committed to The Philippines where we have been operating the hotel since 1976 and the group has no intention of “writing off” The Peninsula Manila.