GSIS, Philippine Plaza Holdings Inc. amend contract of lease for Sofitel Hotel
GOVERNMENT Service Insurance System (GSIS) and Philippine Plaza Holdings, Inc. (PPHI), doing business under the name and style of Sofitel Philippine Plaza Manila, have announced an amendment to their existing contract of lease.
Originally signed in 1991, the lease covers the prime land occupied by the luxury Sofitel Philippine Plaza Manila hotel.
The amended agreement, which was initiated on June 26, 2016, is valid until June 26, 2041, ensuring the hotel’s ongoing operations in the Pasay City area.
In an expansion from the initial agreement, the lease now encompasses the original building landsite and the complementary lots (Lots 19 and 41). This move reflects the commitment of both parties to the hotel’s continuous growth and the flourishing local tourism sector.
“Sofitel hotel’s success is intrinsically linked to GSIS, as its income will be drawn from the hotel’s revenue. By safeguarding GSIS’s assets and generating income from these, we can assure our members and pensioners that their benefits will be provided when due,” President and General Manager Wick Veloso said.
Recognizing the integrity of the leased premises, the parties have agreed to treat the entire area as one indivisible unit. All alterations or improvements to the premises now require prior written consent from GSIS.
At the end of the lease period or in case of earlier cancellation, all permanent improvements introduced by PPHI on the building landsite and complementary lots will transfer to GSIS.
The updated agreement also includes a dispute resolution clause, outlining a path towards resolution through negotiation, mediation, or arbitration in accordance with the Philippine Dispute Resolution Center, Inc. (PDRCI) arbitration rules.
GSIS President and General Manager Wick Veloso and PPHI President Esteban Peña Sy have committed to upholding the terms and conditions of the contract and ensuring the continued success of the Sofitel Philippine Plaza Manila hotel.
