MANDARIN Oriental Hotel Group (MOHG) will cease its management of one of Chiang Mai’s leading luxury properties next month over disagreements with the resort owner.
MOHG told TTG Asia e-Daily: “Mandarin oriental Hotel Group will withdraw from the management of Mandarin Oriental Dhara Dhevi, Chiang Mai, on August 31, 2013.
“The group is proud to have established this resort as one of the best in Asia since it began managing the property in 2005. However, the owner and Mandarin Oriental have different aspirations for its management and long-term development.”
Dhara Dhevi Hotel Company will resume management of the property which will be renamed The Dhara Dhevi hotel.
The news that the world-renowned brand will be exiting Chiang Mai did not come as a total surprise, according to Surapong Techaruvichit, president of the Thai Hotel Association.
“Many people have been watching this case for some time as it (Mandarin Oriental Dhara Dhevi) has not been making money,” he said.
“That’s due to over-investment in the property, however. So it’s really a standard business issue and it will not affect Chiang Mai. The luxury market will continue to do well there.”