Even international hotels operating in the country for decades are also reeling from the impact of the coronavirus disease 2019 (COVID-19) pandemic. Another possible casualty of the COVID-19 crisis could be The Peninsula Manila that is apparently following the decision of Makati Shangri-La to shut down its operations.
The hotel that had been in the industry since 1976 is planning to cease operation due to a significant drop in revenues brought by community quarantine measures, according to a reliable industry source.
The almost-a-year quarantine caused the hotel to incur liabilities in its manpower agencies and rental payments.
The Peninsula Manila is operated by Hong Kong and Shanghai Hotels Ltd. (HSH). It is leasing a lot owned by Ayala Land and is set to expire in 2026.
In an interview with Daily Tribune, Former Senate President Juan Ponce Enrile said the effect of the pandemic to the hotel industry is enormous making Makati Shangri-La, and ‘soon’ the Peninsula to fold its operation.
Enrile said he heard reports last year about Peninsula’s closing down along with Makati Shangri-La. He pointed out that hotel industry may suffer the same fate as other businesses encountered amid the pandemic.
“Indeed, hotels cannot sustain its maintenance cost with the traffic that they generate locally, no way,” Enrile stated./PN
