The InterContinental hotel on the Tsim Sha Tsui waterfront in Hong Kong will lay off about 500 employees as it embarks on a two-year renovation project, a labor union has said.

Alex Tsui, chairman of the Hong Kong Hotel Employees Union, said the workers would have their last working day on May 1.

A small number of the staff will be retained to run a Chinese restaurant, Yan Toh Heen, which will remain open during the renovation.

The hotel, operated by Britain-based InterContinental Hotels Group, said on Thursday it would kick off the renovation on April 20. Upon completion, the hotel will restore its name to Regent Hong Kong – its original brand since its debut in 1980 until the group took over its operations in 2001.

In a statement, the hotel said it would try to arrange its employees to work in other hotels under the same group and would consider hiring them on a priority basis upon completion of the renovation. However, it did not disclose how many employees were laid off.