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Hotel groups in dispute over resort management
Two of Asia’s leading hotel groups are locked in a legal dispute over the management of one of the region’s best resorts, The Chedi Chiang Mai in Thailand.
The Chedi Chiang Mai earned the 18th spot on Conde Nast Traveler’s 2013 list of the top 100 hotels around the globe.
Bangkok-based Minor Hotel Group released a media statement yesterday saying it had rebranded the 84-room Chedi Chiang Mai to Anantara Chiang Mai Resort & Spa.
Dillip Rajakarier, CEO Minor Hotel Group, said the announcement of the group’s 100th property was “an important milestone for Minor Hotel Group and one we are very proud to achieve”.
“Chiang Mai is a key destination in Thailand and one we have been looking at for development opportunities for a long time, adding the perfect dot on the map as our eleventh property in Thailand,” he added.
But GHM, in a note on its website, said the move to replace it as the management company at The Chedi Chiang Mai was a violation of its agreement with the owners.
In full, the statement noted: “An attempt was made on the 4th November 2013 by the owning company of The Chedi Chiang Mai to terminate Singapore-based GHM’s management of the hotel and bring in a new operator to manage the property.
“Regrettably, the manner in which it was carried out was wrongful and violated key conditions and criteria from the existing management agreement.
“Given this unfortunate development, GHM has had no choice but to initiate legal actions against both the owning company as well as the new management company to address the many areas of violations and with it, to seek reinstatement of management and obtain full compensation.”
This is not the first time that GHM has been in dispute with property owners. Last year GHM was removed as manager of The Setai South Beach in Florida. Setai Owners LLC alleged GHM had violated the terms of a management agreement.
TravelMole is seeking further comment from GHM and the Minor Group.
by Ian Jarrett, Editor TravelMole Asia
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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