The Sofitel Philippine Plaza, a distinguished landmark nestled along the serene shores of Manila Bay, is set to close its doors on July 01, 2024, citing security concerns. Managed by the renowned Accor group since 2006, this 600-room haven has long epitomized luxury and elegance in the heart of Manila. However, recent years have seen the hotel grappling with challenges, including aging infrastructure and a perceived decline in service quality, prompting the need for significant renovations estimated at a staggering USD 155 million.
The hotel, a testament to opulence and grandeur, holds a special place in Manila’s history, having been one of 12 luxury hotels commissioned during the tenure of President Marcos Sr. to accommodate the prestigious IMF and World Bank meetings in 1976. As a Member of the French Chamber of Commerce and Industry in the Philippines, Sofitel Philippine Plaza is where the Chamber’s 2023 Annual Gala “Rendez-Vous” momentously took place, hosting more than 400 guests to celebrate the lasting business relations between France and the Philippines.
Yet, its future hangs in the balance as negotiations unfold between Philippine Plaza Holdings Inc. (PPHI), the hotel’s owner, and the Government Service Insurance System (GSIS), which owns the land on which the hotel stands.
The outcome of these crucial negotiations, particularly regarding the renewal of the lease contract, will be instrumental in charting the course ahead for Sofitel Philippine Plaza. PPHI has expressed its desire for a 25-year extension beyond the scheduled expiration in 2041, underscoring the pivotal role that this decision will play in determining the feasibility of the hotel’s revitalization.
Reflecting on the uncertainty surrounding the hotel’s future, Esteban Peña Sy, President of PPHI, remarked, “The future of the hotel is very uncertain because we don’t own the land. So we are still in the process of negotiating with GSIS…the owners of the hotel are calculating whether they can recoup their investments.” The proposed renovations, estimated at approximately $150 million, underscore the magnitude of the undertaking and the pressing need for favorable terms in the lease agreement.
PPHI’s Dedication to Supporting Sofitel Philippine Plaza’s Workforce Through Transition
Amidst this period of transition, PPHI has demonstrated its commitment to its employees, earmarking a substantial sum of P230 million to P287 million for separation benefits. Recognizing the importance of supporting its workforce during this challenging time, PPHI has pledged to provide skills training to the separated employees, facilitating their transition to new opportunities within the hospitality industry.
Esteban Peña Sy further stated, “We’re also asking Accor, because we have very good employees, maybe if they need workers in their other hotels abroad, to hire our separated employees.” This gesture underscores the collective effort to ensure the welfare and livelihoods of those impacted by the closure.
As Sofitel Philippine Plaza prepares to cease operations, the 450 dedicated employees stand poised to embark on new chapters in their professional journeys. With expertise spanning various domains including culinary arts, hospitality management, and guest services, these individuals represent a wealth of talent and experience.
To facilitate their transition, interested Members of the Chamber are encouraged to reach out to CCI France-Philippines, for possible current openings for these roles: Chef, kitchen, restaurant service, bartender, bar service, spa, gym, sales, marketing, accounting, call center, receptionist, butler, housekeeping, maintenance, laundry, gardening.
As the sun sets on one chapter, Sofitel Philippine Plaza remains steadfast in its commitment to a brighter, more prosperous future, guided by resilience, innovation, and unwavering dedication to excellence.
Share with us your possible current openings for the roles mentioned above, email membership@ccifrance-philippines.org.