Hotel owners evicted from Nayong Pilipino

The owners of the Philippine Village Hotel have been evicted from its 36,289-square meter site within the Nayong Pilipino complex in Pasay City.

The Supreme Court ruled that Philippine Village Hotel Inc. (PVHI) must leave the building and pay at least P26 million in unpaid rentals to Nayong Pilipino Foundation, a government-owned corporation that owns the former leisure park.

The SC rejected the claim of PVHI that it should be considered a builder in good faith that has the right to retain possession of the property because it has introduced substantial improvements on the leased premises with the permission of the foundation.

The lessee may remove the improvements should the lessor refuse to reimburse, the decision added.

The lessor can file an ejectment case against the lessee to evict it from the leased premises, according to the SC decision.

Court records show the Nayong Pilipino Foundation leased to PVHI a 36,289-square meter lot in June 1975. Under the lease contract, PVHI agreed to lease the land for 21 years or until May 1996 and renew it for a period of 25 years.

On March 7, 1995, PVHI senior executive vice president Jose Marcel Panlilio renewed the contract for another 25 years or until 2021.

Under that contract, PVHI would pay a monthly rental on a per square meter basis at the rate of P20 per square meter subject to a 20 percent increase at the end of every three-year period. However, since January 2001, PVHI started to default on its monthly rental of P725,780. – Edu Punay