Originally named the Philippine Plaza, it was built during the martial law era administration of President Ferdinand Marcos.

[1] It was one of twelve luxury hotels[2] rushed to construction using funds drawn from Philippine Government finance institutions[3] at the behest of First Lady Imelda Marcos,[3] with the intention of presenting an impression of luxury[3] to the 2000 delegates who would attend the 1976 Annual Meetings of the International Monetary Fund and the World Bank, which would be held in Manila that year,[2] and is considered one of the examples of the Marcos couple's "edifice complex" fondness for the use of construction projects as political propaganda.

[4][5] It stands on land which was originally part of the Cultural Center of the Philippines Complex[6] and is owned by the Government Service Insurance System (GSIS).

The following year, after extensive renovation works worth millions of pesos, the hotel was rebranded as Sofitel Philippine Plaza.

[8] As a result of collective bargaining, a deal would be agreed upon guaranteeing the rehiring of workers should the hotel reopen under the same company, and respecting the existence of NUWHRAIN's involved member unions.