As the Sofitel Philippine Plaza management officially announced its closure on 1 July 2024 to give way for its reconstruction, the Department of Tourism said they are willing to usher help to its affected employees and its management.

“We want to assure you that we will help you and the employees in any way we can,” Tourism Secretary Christina Garcia Frasco told officials of Sofitel during their meeting on Monday at her office in Makati City.

The Sofitel management on 10 May confirmed that they will shut down operations to give way for its retrofitting as the structural integrity of the iconic but aging 5-star hotel is no longer safe for guests and its workers.

Frasco also told Sofitel officials, headed by its General Manager Olivier Larcher, that the impending cessation of operations of Sofitel Philippine Plaza saddened them. However, the DOT agrees with Sofitel management that the safety of employees and guests is paramount.

"We are very dismayed with the announcement of the impending closure of Sofitel, being an icon of Philippine hospitality for nearly 50 years. We heard the news with much concern, especially that we view our hotel and accommodation sector as a critical component of the industry, especially now that we are making efforts to elevate the status of Philippine tourism vis-a-vis our ASEAN counterparts,” she noted.

Frasco maintained that the DoT sees the closure as a significant loss for the tourism industry, as well as for the employees and stakeholders who have dedicated their lives and expended efforts to provide exceptional service to guests, while also inquiring how the Department can be of further assistance in their current situation.

“We express our grave concern for the employees that will be losing their livelihood as a result of the closure,” Frasco said, noting that the DOT through its NCR office is assisting Sofitel in the job fairs to be held for the affected employees.

Separation pay

Meanwhile, Esteban Peña Sy, Philippine Plaza Holdings, Inc. President and owner of Sofitel Philippine Plaza, stressed that they are grateful for the DoT's offer of assistance as they remain optimistic about future developments, especially since the performance of the hotel “has had its best years ever in 2022 and 2023”, with occupancy rates reaching 86 percent to 100 percent on some months.

He said that separation packages would be offered to affected employees, and job training seminars “so they will be adequately equipped” as they transition to new roles.

Hence, he did not said whether when or if the hotel will still resume its operations.

Sofitel Hotels and Resorts is a French hotel chain of luxury hotels based in Paris, France, and owned by Accor.

Also present during the meeting are Philippine Plaza Holdings, Inc. Director Shunsuke Nakata, Sofitel Director of Conference and Events Cynthia Esteban, and DoT officials Undersecretary Shahlimar Hofer Tamano, NCR Regional Director Sharlene Batin, Director Ina Zara-Loyola, and Head Executive Assistant Glenn Ocampo.