GSIS, Sofitel owner expand lease contract

MANILA, Philippines — State-run pension fund Government Service Insurance System (GSIS) and the owner of luxury hotel Sofitel Philippine Plaza Manila have expanded their lease contract as local tourism continues to recover from the pandemic.

In a statement, GSIS said it amended its existing contract of lease with Philippine Plaza Holdings Inc., which owns Sofitel.

The expanded agreement now encompasses the original building landsite and complementary lots 19 and 41.

These are the same lots that were the subject of dispute between GSIS and Sofitel in 2018 that resulted in the filing of an eviction case against the hotel.

At that time, GSIS alleged that Sofitel was operating the lots – with a combined area of 7,393 square meters – as valet parking space, cistern tanks and cooling tower, tennis court and other facilities, without the necessary rental payments.

Now, GSIS president and general manager Wick Veloso said the expansion of the lease contract reflects the commitment of both parties to the hotel’s continuous growth, as well as to domestic tourism.

“Sofitel’s success is intrinsically linked to GSIS, as its income will be drawn from the hotel’s revenue,” Veloso said.

“By safeguarding GSIS’ assets and generating income from these, we can assure our members and pensioners that their benefits will be provided when due,” he said.

Recognizing the integrity of the leased premises, GSIS and Sofitel agreed to treat the entire area as one indivisible unit.

All alterations or improvements to the premises now require prior written consent from GSIS.