Sofitel faces 6-8 month shutdown if evicted by GSIS
It’s a double whammy for both the hotel and the state pension firm if the eviction pushes through.
Philippine Plaza Holdings Inc. (PPHI), the operator of the Sofitel Philippine Plaza Manila, spoke about the evicition case filed by the Government Service Insurance System (GSIS) covering two lots in Pasay City which they are leasing from the government.
The GSIS filed the complaint before the Pasay City Regional Trial Court on Friday, as they alleged that the five-star hotel has not been paying rent for lots spanning 7,393 square meters. The property is being used as parking space and for facilities.
In a report by the Philippine Daily Inquirer PPHI denied Sofitel had back rentals payable to GSIS, saying the eviction would do more harm than good for both.
“The adverse effects of ejecting PPHI from the premises far outweigh any perceived benefits to GSIS,” the company said.
?Under the existing lease contract, GSIS must shoulder the relocation costs of the hotel facilities and equipment, which can amount to no less than P50 million.”
“In order to relocate the facilities and equipment, PPHI may have to shut down hotel operations for six to eight months, and may not be able to maximize profits, thereby decreasing the rent to be paid to GSIS; GSIS will lose an income of around P80 million,? PPHI added.
Will GSIS come up with the same figures?