A teary-eyed Navy Lieutenant Antonio Trillanes said they were ending their resistance to save the lives of civilians still inside the hotel, who included supporters as well as journalists.
"We won't be able to live with our consciences if some of you get hit or get killed in the crossfire," said Trillanes.
Trillanes was elected to the Senate in May in what many commentators saw was a protest vote against President Gloria Arroyo.
"I stand here today, to declare my intentions as a former soldier and now a senator of the country.
"I stood for the rights of the oppressed. We see now that this government will go to any length to hold on to power.
"You have been witnesses and victims of the kind of ruthlessness that the administration has been giving to the people," he told reporters.
The surrender came shortly after troops stormed the Peninsula Hotel using armoured personnel carriers to break down the front doors.
Earlier a small group of armed rebel troops took over the hotel demanding the resignation of embattled Arroyo.
Guests from the hotel in the financial district of Makati in the heart of the capital Manila were evacuated and media ordered to leave.
Güncelleme Tarihi: 30 Kasım 2007, 13:06