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Banyan Tree Pulls from Al Areen Resort in Bahrain Due to Contract BreachesApril 12, 2010 By: Meagan Drillinger
In a rushed move, Banyan Tree Hotels & Resorts has terminated, with immediate effect, its management contract for the Banyan Tree Al Areen Resort in Bahrain on April 8. This was in response to management company Al Areen Holding Company's "continuing breaches of the management contract." Typically, contract terminations require a notice with transition period of two weeks, however Banyan Tree's is effective immediately.
All staff, suppliers, travel agents, wholesalers and guests have been alerted that Banyan Tree will not hold responsibility for anything happening at the resort, nor for any loss, damage, costs, expenses or other claims.
"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," says Ariel Vera, group managing director of Banyan Tree Holdings Ltd. "However, upon issuance of the termination notice on Aprl 8, 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 inconveniences 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."