BAGUIO CITY, PHILIPPINES — Camp John Hay, the storied mountain estate once reserved for American military rest and recreation, is undergoing another transition—this time under Philippine control and interim private sector management, following a decades-long legal battle.
Earlier this year, the Bases Conversion and Development Authority (BCDA) formally regained control over Camp John Hay’s commercial core, including The Manor, The Forest Lodge, and the CAP-John Hay Trade and Cultural Center. The takeover follows a 2024 Supreme Court decision affirming a 2015 arbitral ruling that nullified BCDA’s lease agreement with developer Camp John Hay Development Corporation (CJHDevCo) due to mutual breaches of contract.
Now, the government is preparing to reshape the estate’s future. But for hundreds of homeowners, condominium lessees, and golf club members who invested in the property under the previous developer, the transformation remains far from complete.
Legal Ruling Ends One Chapter, Opens Another
The initial lease with CJHDevCo, signed in 1996, was intended to convert the former military base into a self-sustaining commercial and tourism zone. However, unresolved disputes over revenue-sharing, tax incentives, and development timelines led to arbitration. The 2015 decision ordered both parties to return what they had received from each other and declared the lease rescinded.
After nearly a decade of litigation, the Philippine Supreme Court upheld the award in 2024, enabling BCDA to retake possession of the property in January 2025.
In the wake of the takeover, BCDA enlisted Landco Lifestyle Ventures Inc. (LLV)—a subsidiary of Metro Pacific Investments Corp.—to oversee hotel and event operations in an interim capacity.
Displaced Investors, Legal Fallout
Among those affected by the rescission are approximately 400 condominium owners and more than 160 estate lot holders who had entered into long-term lease agreements under CJHDevCo.
In response, BCDA offered new contracts, and by March 2025, the agency announced that over 95% of estate lot owners had signed updated agreements extending their leases through 2050 with renewal options.
However, some condominium owners have filed Petitions for Quieting of Title in Baguio courts, asserting that their original lease rights—valid until 2046—remain legally binding.
Concerns have also emerged regarding increased fees, including a reported ₱1.5 million security deposit required under the new lease terms.
Approximately 35 investors have initiated legal action against CJHDevCo, seeking to recover alleged losses and unfulfilled guarantees.
CJHDevCo, now sidelined from operations, has since offered to waive its ₱1.42 billion arbitral award if the government commits to honoring the rights of over 3,000 stakeholders—a proposal that, as of press time, has not been formally addressed by BCDA.
Golf Club Members Push Back
Nearly 2,500 golf club members were also affected by the transition. Many had purchased memberships under a program approved by the Securities and Exchange Commission. These memberships were revoked following BCDA’s reclamation of the golf course.
In response, a class suit led by former Baguio City Mayor Mauricio Domogan has been filed to challenge the revocation.
In an attempt to address the issue, BCDA introduced interim terms: a flat monthly rate of ₱5,000 for active members, a ₱40,000 one-time fee to re-establish playing rights, and discounts for dependents and junior players.
Landco Steps In, Focuses on Operations
While BCDA focuses on long-term redevelopment planning, Landco has implemented hospitality reforms under its interim management.
A 5% service charge, effective March 1, 2025, was introduced for hotel stays, with proceeds going directly to hotel employees.
Additional upgrades include enhanced wellness facilities, nature-based experiences, and public infrastructure improvements—such as improved lighting and pedestrian access—in coordination with the Baguio city government.
The Road Forward
With Landco’s role confirmed as interim, BCDA has stated it will revisit and revise the Camp John Hay master plan, with the intent of opening the estate to public bidding for long-term development.
In parallel, unresolved claims filed by homeowners and golf club members—some of which involve petitions for quieting of title and class suits over revoked memberships—continue to shape the estate’s legal landscape.
Whether through judicial resolution, settlement, or government intervention, the outcome of these disputes will likely determine the pace and direction of Camp John Hay’s future as a national heritage and tourism destination.
- 1903 — Established by the U.S. as a military R&R facility
- 1941 — Bombed during World War II; occupied by Japanese forces
- 1955 — Converted to John Hay Air Station
- 1991 — Turned over to the Philippine government
- 1996 — BCDA signs lease with CJHDevCo
- 2015 — Arbitration nullifies lease due to mutual breach
- 2024 — Supreme Court upholds arbitration ruling
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2025 — BCDA regains control; Landco begins interim operations
