Shangri-La Group couldn’t afford Makati hotel’s annual rent of P300M; Ayalas keen on retaking property

But a Babbler with inside knowledge of management’s plans revealed that this could be curtains for the city’s iconic luxury hotel.

READ: Makati Shangri-La taps out to Covid, closing by February 1

“The Shangri-La group decided to close because they havea P300 million annual lease to Ayala Land. The group believes this (pandemic) will last 12 to 18 months before any significant improvement. They just couldn’t afford to pay the annual rent and pay its staff in view of the dismal earings,” said the Babbler.

The Babbler said that only the Makati branch would be shuttered as all other Shangri-La hotels (EDSA, BGC, Boracay, and Cebu) would remain in operation.

“They own the land where the Shangri-La at the Fort stands. Plus, it has a residential component (Horizon Homes),” the Babbler said.

But the Babbler said the Ayalas were not too concerned about Shangri-La Makati’s closure because they have long wanted to retake the property (which was built in 1993) for its mall expansion.