Published On: Tue, Dec 18th, 2012

Hyatt takes matter to court to guarantee their rights

WILLEMSTAD — According to Hyatt Curaçao NV, the owner of the resort at Santa Barbara Plantation – the Santa Barbara Hospitality NV, acted unlawfully by removing Hyatt as manager of the hotel chain. Also the manner of this removal is queried according to a press report: “The manager-on-duty was informed by the owner at midnight last Friday that immediate action was taken to remove Hyatt as manager of the hotel.” The owner believes to have terminated the management contract with Hyatt in a letter dated November 21st. Hyatt states to have initiated arbitration late November and that this process is still in progress. “The owner, however, chose for this rash action and not arbitration. Hyatt will therefore take this matter to court to guarantee their rights and expects to regain the management of the resort. We are concerned about the impact of this disruptive action for the resort, the guests and employees.”

Hotel Investment Group Santa Barbara Hospitality NV stated the response is ‘misleading’, considering the hotel is operational, entirely staffed and observes all reservations. “The owner believes it acted in accordance with its legal rights under the management agreement to terminate Hyatt, and we look forward to maximizing the potential of this resort under new management.”

“After the hotel suffered from more than two years of alleged mismanagement and staggering financial losses, investors would not continue to fund the operation under Hyatt’s management,” Maxfield says. “Under these circumstances, the owner believed it was left with only two options – close this failing hotel and potentially lay off 400 people, or remove Hyatt and install a new management company.”

The Chata regrets the decision but also understands there are two side of the picture and that one must view the situation as such. “The owners of the hotel stated the hotel will remain operational under normal circumstances and that the decision will not injure the employees. The Chata is also pleased to hear that all reservations will be observed and all agreement with international partners honored. We don’t know what the motives were for this decision but remain optimistic that this change will lead to even more tourist development for Curaçao”, Chata stated in a reply.

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