The Celtic Collection, which includes the Celtic Manor Resort in Newport, has advised its staff of a redundancy consultation programme, with around 450 job losses expected.
The group said the impact of Covid-19 and "drastically reduced" occupancy and revenues forecast for many months to come means its current financial model is "not sustainable" and the group therefore has taken the "difficult decision" to "reshape and resize its business".
Around 450 jobs from a total permanent workforce of 995 are expected to be made redundant, based on current hospitality and tourism restrictions, however the group said this may reduce "significantly should more of our facilities be permitted to reopen during the consultation period".
The Celtic Collection includes the five-AA-star, 330-bedroom Celtic Manor Resort; the adjoining four-AA-star Manor House with 70 bedrooms; the nearby 148-bedroom, four-AA-star Coldra Court hotel; the Tŷ hotel in Magor; the International Convention Centre (ICC) Wales; and the Newbridge on Usk Inn. A second Tŷ hotel in Newport is due to open next year, as is the Westgate hotel in Cardiff, which the group will operate.
A statement from the group said: "It is clear the Covid-19 crisis will continue to have a catastrophic effect on the global economy, our nation and the travel, tourism and events industries for many months to come, and the Celtic Collection must reshape and resize its business to ensure that it is fit for the future. With drastically reduced occupancies and revenues, its current financial model is not sustainable.
"The Celtic Collection deeply regrets having to take this course of action in response to the devastating economic consequences of the Covid-19 pandemic and understands the enormous impact this will have on the livelihoods of affected team members and their families. Everything possible will be done to support those affected and an employees' consultative panel has been involved in the decision-making process."
The group said it was unable to make any further comment as the consultation process is ongoing. The Celtic Manor Resort is due to reopen on 14 July. Staff whose positions are at risk of redundancy have been contacted.