STARWOOD Hotels & Resorts Worldwide will cease managing Le Méridien Khao Lak next January, ending the hotelier’s decade-long relationship with the resort.
The announcement puts an end to recent disputes between the global hotel brand and the resort owner, clearing the way for Anantara Hotels and Resorts to assume management of the property, according to a well-placed industry source speaking on condition of anonymity.
“Starwood Hotels & Resorts Worldwide and Vitya Holding Company announced that the management agreement of Le Méridien Khao Lak would cease on January 15, 2014. The resort is owned by Vitya Holding Company and has been managed under the Le Méridien brand,” said Starwood in a joint statement it issued with the resort owner.
“Both companies have discussed and re-evaluated their strategies for the future and mutually agreed to de-flag the hotel under the Le Méridien brand moving forward… Starwood Hotels & Resorts will continue to explore opportunities to further expand the Le Méridien brand throughout Thailand, as well as its other brands into Thailand in the near future.”
While the termination of the management contract had been on the cards for some time, negotiations had recently reached a deadlock over the exit date, said the source.
“They’ve (Starwood and Vitya) been in a termination dispute over the precise exit date with Starwood obviously wanting as much time as possible before ending its management of Le Méridien (Khao Lak),” he said, adding that Anantara would take over management of the property.
Minor Hotel Group, which owns the Anantara brand, would not comment directly on whether the company has an interest in the 258-room property.
“Minor Hotel Group is currently considering many growth and development opportunities across Asia-Pacific, the Indian Ocean, the Middle East and Africa, especially for key brands such as Anantara and AVANI,” said a spokesman.
