MANILA, Philippines – San Miguel-led New NAIA Infra Corporation (NNIC) plans to demolish the long-abandoned Philippine Village Hotel — with the necessary permit already submitted to the Pasay local government unit — as the airport operator eyes expanding its terminal for domestic flights.
The clarification made on Monday, November 18, came after multiple news reports quoted NNIC General Manager Angelito Alvarez that the operator is now in talks with the LGU and is expecting a decision on its plans in the coming days.
“NNIC intends to use the site for the construction of the extension of the existing Terminal 2 for domestic flights which, in turn, is expected to accommodate approximately an additional [22] million passengers annually,” San Miguel Information Officer Ferdinand Constantino said.
The rundown hotel — built to house contestants of the 1974 Miss Universe beauty pageant — has been abandoned for over two decades before it landed back in the hands of the government. The Manila International Airport Authority (MIAA) previously told Rappler that “there [were] others occupying” the building.
The Philippine Village Hotel is located within government-owned land and is right beside Terminal 2, just by the main ramp of Philippine Airlines, and across the 250th Air Wing of the Presidential Airlift Wing.
The MIAA warned of its security risks, fearing that it could become a staging point for “terrorist activities.”

Local authorities previously had trouble entering the property as there were armed guards who patrolled the hotel. (READ: Who owns the abandoned Philippine Village Hotel that ‘undermines’ NAIA’s safety?)
In November 2023, illegal occupants of the Philippine Village Hotel were ordered by a Pasay city court to leave after a lengthy legal battle. The MIAA said last year the property would be used for the expansion of NAIA Terminal 2.
Renovations in the country’s main international gateway have been in full swing since it was turned over to the San Miguel group in September.
“NAIA has long been operating way beyond its intended capacity of 35 million passengers per year. It has been serving around 45 million per year, and this year, we are anticipating reaching more than 50 million,” NNIC President Ramon Ang said in a statement dated November 15.
“That’s why right now our emphasis is on ensuring that all facilities and equipment work reliably. At the same time, we’re working to address congestion and improve operational efficiencies, while laying the groundwork for major construction works,” he added.
For instance, the NNIC has temporarily shuttered Terminal 4 — the airport’s oldest terminal — for a facelift on November 6.
The new operator has also added more passenger boarding bridges, improved internet connectivity within the airport, and raised parking fees — which in turn, freed up parking slots. (READ: NAIA overnight parking fee hiked to P1,200 after turnover to San Miguel group)
It even procured a new explosive detection system months before the airport’s management was turned over and launched the Overseas Filipino Workers’ lounge at Terminal 3.
The group will be operating NAIA for the next 15 years, with a possible 10-year extension. – Rappler.com