We’ve all seen films where unwanted guests are escorted through reception and out of a lavish hotel by hotel management. But hotel management being dismissed in the middle of the night and asked to leave immediately – is this unheard of? Apparently not. The last few months have seen owners of tops hotels asking hotel management groups to surrender keys and vacate the premises. At the same time, these broken relationships are making way for others to flourish as law firms step in to “comfort” the hotel owners on the one side, and management groups on the other.
The President of Turnberry Hotel Group, C. Scott Rohm, gave Fairmont Hotels and Resorts its marching orders on 28 August while thanking them for their efforts. Shortly afterwards a lawsuit was filed in the New York Supreme Court to enquire if the contract termination warrants remuneration. Turnberry Associates is one of America’s premier real estate development and property management companies. Fairmont is a leader in the global hospitality industry, with a distinctive collection and a worldwide reputation for excellence. Today it is the largest luxury hotel management company in North America. Marriott has also had its share of hick-ups losing the Modern Honolulu hotel in Waikiki on the same day Turnberry expelled Fairmont. The owners of the Ritz Carlton in Manalapan, Florida also started a legal battle with Marriott last month, shouting mismanagement and overspending. Marriot is an international lodging leader, with more than 3,500 properties and the broadest portfolio of brands in the industry. These battles aren’t everyday occurrences, but they are definitely nothing new.
What is at the heart of the problems these powerhouses are facing? One thing is certain, the battles are very fierce when these major players collide, and there is no warm feeling like the one experienced during a stay at the Four Seasons.
Via: Wall Street Journal