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The Canadian Press - ONLINE EDITION

Only 1 of Spain's luxury Parador hotels to close instead of 7, as earlier feared

By: The Associated Press

Posted: 01/4/2013 4:22 AM | Comments: 0

MADRID - Only one of Spain's luxury Parador hotels will close, instead of seven, as earlier planned, following negotiations between the parent company and labour unions.

The hotels, located in historic buildings in some of Spain's most beautiful locations, are a symbol of the country's key tourism industry.

The General Workers Union's said in a statement Friday that the closure will result in 350 layoffs. Some 25 other Parador hotels will close temporarily and some will cease to have restaurants.

If the company had closed seven hotels, it would have cut 650 workers from its 4,400-strong workforce.

The group, which opened in 1928, expects losses of some €100 million ($130 million) in 2012 due to a drop in guest numbers. Spain is struggling to emerge from recession and has 25 per cent unemployment.

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