DUE to “unprecedented business losses,” Kensington Hotel Saipan will implement a reduction-in-force effective May 21, 2025.
“Our company continuously faced unprecedented business losses that necessitate to strategically restructure a new business operation model. The new operation model is being undertaken to ensure the long-term survival and viability of our hotel,” said Jay Ahn, director of human resources of Micronesia Resort, Inc., the subsidiary of Eland Corp., which operates Kensington Hotel in San Roque.
In an April 21, 2025, notification to CNMI Labor Secretary Leila Staffler, Ahn said the reduction-in-force or RIF will be implemented at Kensington’s hotel operation, East Moon Restaurant, Loria Restaurant, Meisho Restaurant, Ocean Grill Restaurant, Splash Bar, Ohas Bar, Infiniti Pool Bar, the hotel’s main kitchen, Queen’s Club, Kensington Hall and Ohas Café in Garapan.
Those who will be affected are six contractual workers and other key employees.
Variety obtained a copy of the RIF notice through an Open Government Act request to CNMI Labor.
In another notification to Labor on Monday, April 28, 2025, Ahn said that as MRI continues “to navigate through significant operational challenges and financial constraints, we must unfortunately implement strategic changes to safeguard the long-term sustainability of Micronesian Resort, Inc. These decisions come after extensive evaluation and are part of our transition to a new business operations model designed to improve efficiency and future resilience.”
Ahn said the reduction-in-force will involve:
1) The early termination of the contractual employment of the hotel’s strategic and planning director effective May 24, an assistant manager effective May 25, and a sous chef effective May 31.
2) At-will employment termination with MRI providing a 10-day advance notice to affected job categories.
Ahn said the selected at-will positions will be discontinued in alignment with the hotel’s restructuring plan with 10 days advance notice to take effect on May 8 to June 10, 2025. These employes, Ahn said, will be informed individually and will receive support through the transition, including guidance on benefits and available assistance.
3) Employee furloughs. During the hotel’s temporary closure from June 7 to July 9, the remaining employees, both at-will and contractual, will be placed on furlough. A recall of employment will begin on June 10, 2025, to operate the new business operation model aimed at improving the hotel’s long-term sustainability.
Ahn said Ohas Café in Garapan will remain in operation, but with reduced hours to ensure sustainability.
