Following the alleged dismissal of hundreds of employees of Sofitel Philippine Plaza last week, an official of an organization of hotel owners in the country admitted that they, themselves, are unsure whether the closure of the iconic hotel will be for good.

“During a meeting a week after they announced that they would stop operations, I told them to be clear or frank on what will happen or what they are going to do. If you want to close, then announce it and no other issues should be discussed,” said Arthur Lopez, president of the Philippine Hotel Owners Association of the Philippines during a press conference announcing the kick-off of The Philippine Tourism and Hotel Investment Summit slated this 21 June 2024 at the New World Makati Hotel, Makati City.

Although Sofitel belongs to the 217 hotel members of PHOA, Lopez said the only thing that they can do is to give them the right advice, but still, it’s the hotel owners’ decision whether to continue operating once the refurbishing is done.

“The first thing that we did for them is to give them advice. But it’s a tough one because we don’t know how long it would take to reconstruct the hotel. I don’t understand their situation, we cannot tell. Operating a hotel of that size requires huge capital, and don’t expect the returns (of investment) will be good, although they are doing good when it comes to food and beverage,” according to Lopez.

Global hospitality chain Accor, the operator of Sofitel, last 10 May announced the hotel’s closure starting on 1 July.

According to the statement, the decision was made as part of the hotel’s “ongoing commitment” to provide the “best possible experience” to their guests.

Last week, the National Union of Workers in Hotel, Restaurant, and Allied Industries said they believe that Sofitel would soon reopen after a renovation.

Meanwhile, Esteban Peña Sy, Philippine Plaza Holdings Inc. president and owner of Sofitel Philippine Plaza, during a meeting with Tourism Secretary Christina Garcia Frasco, assured that separation packages would be offered to affected employees, as well as job training seminars “so they will be adequately equipped” as they transition to new roles.

Go Negosyo gives business mentoring

Meanwhile, Go Negosyo conducted Entrepreneurship Mind setting seminars and entrepreneurship mentoring for the soon-to-be displaced Sofitel Philippine Plaza employees last 10 and 11 June.

The mentoring is part of the Malasakit Transition Program conducted for the employees alongside the Department of Labor and Employment, the Department of Trade and Industry, and the Social Security System.

“We were asked by the First Lady what we could do for these displaced workers,” related Go Negosyo founder Joey Concepcion. “A lot of these employees are veterans in the tourism industry and I am sure they will have a lot to contribute when they start their businesses given their real-world experiences in hospitality,” he said.

The program aims to support employees by providing alternative pathways through entrepreneurship and guiding them about available business ventures they can pursue.

It will also connect employees with financial resources, market partners, and other business opportunities aligned with their entrepreneurial plans.

Sofitel’s ceasing of operations will leave 480 employees affected by the closure.

The number does not include casual employees and indirect hires, while a lot of the employees are middle-aged or nearing retirement and are hesitant to pursue employment in another hotel despite more than a hundred companies having written the hotel to offer employment to the displaced workers.

Many of the employees said they would rather explore entrepreneurship and use their separation pay as starting capital for businesses.