State-run pension fund Government Service Insurance System and Philippine Plaza Holdings Inc., doing business under the name and style of Sofitel Philippine Plaza Manila, amended their lease contract that was 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.
GSIS said in a statement Wednesday that in an expansion from the initial agreement, the lease now encompasses the original building landsite and the complementary lots (Lots 19 and 41), reflecting the commitment of both parties to the hotel’s continuous growth and the flourishing local tourism sector.
GSIS president and general manager Wick Veloso said the 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,” Veloso said.
Recognizing the integrity of the leased premises, the parties agreed to treat the entire area as one indivisible unit. All alterations or improvements to the premises now require prior written consent from GSIS.
The updated contract states that 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.
It 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. arbitration rules.
Veloso and PPHI president Esteban Peña Sy committed to upholding the terms and conditions of the contract and ensuring the continued success of the Sofitel Philippine Plaza Manila hotel. Julito G. Rada