Manila to put hotel up for auction

An official of the Manila City Hall (MCH) yesterday said they are contemplating on taking over the Grand Boulevard Hotel and putting it up for auction after it allegedly failed to pay its arrears, amounting to P176 million.

Ricardo de Guzman, chief of staff of Manila Mayor Alfredo Lim, said the Grand Boulevard Hotel (formerly called the Silahis International Hotel Inc.) said that “for several years the establishment has failed to pay its real property tax that amounted to P106 million. But apart from that they have not paid the business permit, so if you will add everything including the additional interest, it would amount to about P176 million.”

However, he explained that even if the auction, tentatively set on Oct. 26, pushes through there would still be a one-year “retention period” or “turnover period” to the new management.

De Guzman said a 20-day temporary restraining order (TRO) is in effect, preventing the city government from taking over the hotel. He added that he could not remember when the TRO would be lifted.

A source at the Manila City Hall (MCH) recalled that the MCH sheriff had attempted to post a “closure order” sign on the hotel for allegedly operating without the necessary permits, but every time they put a sign up, someone would tear it down.

Meanwhile, the hotel’s management said in a letter that Lim already attempted to hold a public auction last Sept. 26.

Hotel officials said there is a restraining order preventing “any auction or any future auctions (by) the City of Manila, because the hotel is decidedly within the protection, since December 2004, of the rehabilitation laws.”

The Manila City Regional Trial Court Branch 24 reportedly issued an order last Sept. 25 instructing the city government to “respect the stay order issued by this court dated Oct. 18, 2004, and to hold in abeyance the conduct of any sale by public auction on the properties of the petitioner, subject of the motion.”

Other issues were supposed to have been discussed yesterday but a court employee said that no resolution has been issued and they are waiting for the hotel to issue a comment before the court can issue a resolution. Hotel officials have been given 10 days to file their comment.  – Evelyn Macairan