Dubai, United Arab Emirates, 11th April 2010 - Banyan Tree Hotels & Resorts announced that it has terminated with immediate effect, its management contract for the Banyan Tree Al Areen resort in Bahrain.
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 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 is with immediate effect. Notices have been sent to all staff, suppliers, travel agents and wholesalers, and hotel guests, that Banyan Tree will 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.
"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," said Mr. Ariel Vera, Group Managing Director of Banyan Tree Holdings Ltd. "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. 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 will be taking legal action against Al Areen for this further violation of the management contract. In the meantime, its current priority is to mitigate the negative effects of the immediate termination on its associates, guests, business partners, suppliers, and travel agents.
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About Banyan Tree Holdings Limited
Banyan Tree Holdings Limited ("Banyan Tree" or the "Group") is a leading manager and developer of premium resorts, hotels and spas in the Asia Pacific, with more than 20 resorts and hotels, over 60 spas, in excess of 70 retail galleries, and two golf courses. The Group manages and/or has ownership interests in niche resorts and hotels. The resorts each typically has between 50 and 100 rooms and commands room rates at the high end of each property's particular market.
Banyan Tree has seven operating business segments: hotel investment, hotel residence sales, hotel management, spa operations, gallery operations, property sales, design fees and others (design and project management, golf course operations and other businesses).
The Group's primary business is the management, development and ownership of resorts and hotels. This is centered on two award-winning brands: Banyan Tree and Angsana. Banyan Tree also operates the leading integrated resort in Thailand - Laguna Phuket, through the Group's subsidiary, Laguna Resorts & Hotels Public Company Limited.
As a leading operator of spas in Asia, Banyan Tree's spas are one of the key features in their resorts and hotels. Its retail arm Banyan Tree Gallery complements and reinforce the branding of the resort, hotel and spa operations.
Since the launch of the first Banyan Tree resort, Banyan Tree Phuket, in 1994, Banyan Tree has received over 550 awards and accolades for the resorts, hotels and spas that the Group manages. The Group has also received recognition for its commitment to environmental protection and emphasis on corporate social responsibility.
© Press Release 2010
