Diplomat Hotels, Inc. acquired ownership of the property in 1973 and remodeled thoroughly the interior into a 33-bedroom hotel but still retaining the unique features which was earlier established by the Dominican friars. The hotel was managed by Antonio Agapito "Tony" Agpaoa, a Baguio-based entrepreneur and faith healer famous for psychic surgery. Agpaoa suffered a heart attack and was diagnosed with brain hemorrhage in the 1980s. He died in 1987 of the ailments. Since his death, the hotel ceased operations and was abandoned. Following its abandonment, the place was looted and sacked. The building also sustained significant damage during the 1990 Luzon earthquake.