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The neighbourhood of Ermita, located between the ancient district of Intramuros and the Malate neighbourhood in Manila, was founded in the late 16th century. The name is derived from Spanish word "la ermita," which means "hermit's retreat," because a monastery was once built here to house an icon of the Virgin Mary. Over time, the monastery became the Church of Ermita, which has been rebuilt several times. During the American colonial period, the neighbourhood of Ermita was given a new life as a university neighbourhood, where the campuses of the University of the Philippines the campuses of the University of the Philippines, the Ateneo de Manila University, the Assumption of the Blessed Virgin Mary College for Women and St Paul's College for Girls. Student dormitories are also located here. The residential part of the neighbourhood was settled by Americans who founded the Armed Forces and Navy Officers' Club and the University Club.

During the legendary Battle of Manila in 1945, Ermita was the site of some of the of the worst bloody slaughterhouses. The wife and four children of the future president of the Philippines Elpidio Quirino were killed here, as was Supreme Court member Anacleto Diaz. Up to 85 per cent of Hermit's territory was destroyed, and about 100,000 civilian Filipinos died during this battle.

After the war, Ermita was almost completely rebuilt. University life once again boomed at the site. However, as the decades passed, Ermita began to gain fame as Manila's red light district. Former mayor Alfredo Lim has done much to beautify this area of the city and restore its reputation. As a result of these efforts, nightlife in Ermita began to wane. However, even today, there are still plenty of karaoke bars, clubs and restaurants in which to spend the night. During the daytime in Ermita you can wander through souvenir and antique shops, stroll through Risal Park or take in the local sights such as the City Hall, Oceanarium, etc.