ACESITE (Phils.) Hotel Corp, operator of Manila Pavilion Hotel, is currently negotiating for a renewed contract with the Philippine Amusement and Gaming Corp. (Pagcor) so that it can continue to receive revenue from Pagcor’s monthly lease.
In a reply to a query from the Philippine Stock Exchange (PSE) on Monday, Acesite said it has written Pagcor to ask for the implementation of a quantum merit solution while the contract is being negotiated.
A renewal of the contract will allow Pagcor to operate in a leased space in Manila Pavilion Hotel. Acesite said there is no time frame agreed yet between Acesite and Pagcor. Should Pagcor leave Manila Pavilion Hotel as a tenant, Acesite said the company “will no longer receive approximately P29.2 million in monthly rent from Pagcor.”
Acesite said that scenario is “unlikely,” but noted that if that is the case, the company “has alternative plans for the usage of vacated space” but has no estimate yet of the potential financial impact of the move—loss of earnings and cost of renovation, among others.
At present, Acesite said Pagcor “continues to operate the leased premises under the same terms and conditions, except the period of the original lease.”
Incorporated in 1952 and formerly Delbros Hotel Corp., Acesite is engaged in hotel and restaurant operations, primarily heading Manila Pavilion Hotel. It is under parent firm The Wellex Group Inc., and is also 59.78-percent held by another listed resorts operator, Waterfront Philippines Inc. (WPI).
According to its PSE profile, The Manila Pavilion Hotel complements WPI’s chain of Waterfront hotels in Cebu City, Mactan and Davao.