Firm that owns Sofitel Philippine Plaza denies reports of unpaid rent to GSIS

In this photo, taken Nov. 14, 2015, a military helicopter hovers over Sofitel Hotel where US President Barrack Obama was expected to stay during the APEC Summit. (File photo by MARIANNE BERMUDEZ / Philippine Daily Inquirer)

Sofitel Philippine Plaza has no reason to vacate the land where it stands in Pasay, contrary to reports that came out on Friday that the Government Service Insurance System had ordered the hotel to leave because of unpaid rentals amounting to P80 million.

The reports are “misleading and false,” according to a statement issued on Saturday by lawyer Diane Christie Rosacia, counsel for Philippine Plaza Holdings, Inc., which owns the hotel.

PPHI has been complying with all it obligations to the GSIS – “including the payment of rent,” Rosacia said.

READ: GSIS orders Sofitel to vacate due to unpaid rent

The reports, Rosacia said, seemed to have come from an telephone interview of Jesus Aranas, recently appointed president and general manager of GSIS, who told Anthony Taberna of dzMM that the hotel should vacate the premises allegedly because its contract with GSIS had expired and that it still owed P80 million in back rentals.

“The interview and the news reports have cast doubt on the hotel’s perceived future and ability to continue its operations, thereby negatively affecting its business reputation. There is thus a need to clarify certain key points,” Rosacia read.

The occupation by the hotel of the subject lots is covered by a valid and existing contract, she said.

“The 1991 Amended Contract of Lease, which was renewed in 2016 and is effective until 2041,” the lawyer added. “Moreover, PPHI has been complying with all its contractual obligations to GSIS, including the payment of rent. The controversy concerns only two small lots, and not the hotel itself or the land where it stands. There is no reason for the controversy to affect hotel operations in any way.”

“Please be assured that Sofitel Philippine Plaza remains committed to providing its valued clients and patrons with the same world-class service that the hotel is known for.” /atm