MINOR Hotel Group (MHG) has announced the rebranding of The Chedi Chiang Mai as an Anantara, but legal actions initiated by the current management company, General Hotel Management (GHM), against the owning company and MHG, cast a shadow over the management takeover.
GHM president and CEO, Hans Jenni, did not respond to TTG Asia e-Daily’s request for comment but in what clearly is an unhappy parting, a note on GHM website about the termination said: “An attempt was made on the 4th November 2013 by the owning company of the The Chedi Chiang Mai to terminate GHM’s management of the hotel and bring in a new operator to manage the property.
“Regrettably, the manner in which it was carried out was wrongful and violated key conditions and criteria from the existing management agreement. Given this unfortunate development, GHM has had no choice but to initiate legal actions against both the owning company as well as the new management company to address the many areas of violations and with it, to seek reinstatement of management and obtain full compensation.”
It added: “GHM will also make every effort to ensure that its loyal guest and customers will not be inconvenienced with the intrusion and will ensure that the renowned GHM experience (one that has made The Chedi Chiang Mai one of the most recognised luxury names in Chiang Mai since 2006) remains unmarred.”
MHG is proceeding to rebrand the 84-room hotel as Anantara Chiang Mai Resort & Spa, saying it marked the 100th hotel in the MHG portfolio.
In a press release issued today, Dillip Rajakarier, CEO, MHG, said: “The fact that our 100th property is such a significant addition to the portfolio, both with it being such a stunning resort and the strategic addition of a Chiang Mai property to our Thailand collection of Anantara properties, makes it even more special. Chiang Mai is a key destination in Thailand and one we have been looking at for development opportunities for a long time, adding the perfect dot on the map as our eleventh property in Thailand.”
Contacted, Minor Corporation’s CEO and chairman, Bill Heinecke, said: “No comment.”
