Banyan Tree Hotels & Resorts has terminated its management contract for the Banyan Tree Al Areen resort in Bahrain with immediate effect.
Banyan Tree issued on 8 April the notice of intention to terminate as a further step to its earlier petition in March to wind up Al Areen Holding Company, the owner of the resort, for what it said were “continuing breaches of the management contract”.
Termination of an agreement usually requires a notice with a transition period of two weeks, but Banyan Tree’s termination of the management contract was immediate.
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The hotel operator issued a statement saying that notices had been sent to all staff, suppliers, travel agents and wholesalers, and hotel guests, explaining that Banyan Tree would not be responsible for anything happening at the resort, nor for any loss, damage, costs, expenses or other claims arising from any stays, transactions with, visits to or usage of the services and facilities of the resort.
Banyan Tree Holdings Ltd group managing director Ariel Vera said: “The termination was supposed to be effective 15 days after issuance of the notice if the breaches were not rectified, and during this transition period, Banyan Tree was supposed to continue to manage the resort as per the management contract”.
“However, upon issuance of the termination notice on 8 April, the owner decided to further breach the contract and immediately took over the resort on the following day,” Vera explained.
“This has resulted in infringements on our brand rights, and inconvenience and confusion to our guests and associates, travel partners and suppliers. We therefore have no choice but to immediately cease our involvement with the resort.”
Banyan Tree said it would be taking legal action against Al Areen for “this further violation of the management contract”.
The company added that, in the meantime, its priority was to “mitigate the negative effects of the immediate termination on its associates, guests, business partners, suppliers, and travel agents”.
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Apr 29, 2010 , United Kingdom
Stayed here in 2009. The place looks nice but the service, management and maintenace of the hotel is dreadful. If you decide to spend the large sums needed to stay here dont expect to be treated well. Examples are: arrogant reception staff, uninterested managers, dirty pool area, room service not...