In a disclosure letter to the Philippine Stock Exchange, Acesite said the withdrawal of HIPI will "impact chiefly on room production generated by the Holidex reservation system."
Acesite said the system accounts for 13 percent of the hotel’s room bookings and translates to an annual sales volume of P31.3 million.
The company, however, believes that the business of the hotel shall remain competitive and stable despite HIPI’s suspension of the hotel management contract.
Acesite said the de-identification costs and costs related to the installation of new signs, logos, and symbols are expected to cost the company P6 million. These are, however, one-time costs that will in no way affect the firm’s financial status.
The company would remove all logos, signs and symbols within the hotel that may be associated with the Holiday Inn brand name under a time frame yet to be specified by HIPI.
Acesite said it was not in discussions with any other management company for a new hotel management agreement.
Acesite received a pre-termination notice from HIPI of their hotel management agreement, effective Feb. 28. The contract was to have expired on Jan. 1, 2005.
HIPI said "the hotel’s current physical condition is no longer in keeping with the norms of a "Holiday Inn" hotel in accordance with HIPI guidelines."
Acesite, however, believes that the physical condition of the hotel is within current regulations.
Management has taken immediate steps to reassure its guests that the hotel is dedicated to the utmost standard of service excellence, guest safety, comfort, security and satisfaction.
Formerly known as Delbros Hotel Corp., Acesite is a foreign-owned domestic corporation incorporated to engage in hotel operations and investing. It owns the Holiday Inn Pavilion Hotel, a de luxe hotel situated along United Nations Avenue in Manila. The operations of the latter are being managed by Holiday Inn Worldwide.
"The company believes that a well-planned and multi-phased renovation program for the hotel shall be able to fully serve the market niche of the hotel, conform with the Department of Tourism standards and fully satisfy national and local building regulations," Acesite said.
Acesite assured that it shall continue to upgrade its fire and life safety systems as part of efforts to provide service to the public.
A major customer of the hotel is the Philippine Amusement and Gaming Corp. (Pagcor) which operates the Casino Pilipino-Pavilion.