Davao-based businessman Dennis Uy has decided to temporarily close its upscale resort in Tawala, Panglao Island, Bohol due to President Rodrigo Duterte’s imposition of lockdowns to contain COVID-19.
Uy’s debt-burdened PH Resorts Group Holdings said revenues of Donatela Resort & Sanctuary boutique hotel nosedived by 75 percent year on year to P2.4 million in the first nine months of 2021 due to lower occupancy from the pandemic.
PHR decided to temporarily close Donatela on October 2021 to avoid operating losses due to lack of guests.
Despite reduced manpower since the pandemic broke out in March 2020, direct costs and expenses have ballooned to 189 percent of revenues in the first nine months this year from 104 percent during the same period last year.
“Management will strategically assess when Donatela can resume its operations once the economy has achieved some level of normalcy, capitalizing heavily on the Philippines’ robust local tourist base,” said PHR.
PHR said Donatela suffered booking cancellations and failed to achieve its reservations’ target in the first quarter of 2021 due to the “return of restrictive quarantine measures.”
“There was a re-imposition in the third quarter of 2021 of the Enhanced Community Quarantine (ECQ) restriction in the National Capital Region (NCR) and certain adjacent provinces. This led to a low number of bookings which would have led to operating losses,” said PHR.
PHR noted that it was only able to reopen Donatela in July 2020 or four months after Duterte imposed the longest and most stringent lockdown in the world.