FOLLOWING proceedings lasting 20 months, the ICC International Court of Arbitration has ruled in favor of General Hotel Management (GHM) over their unjustified ousting as operators over The Chedi Chiang Mai.
Owning company of the hotel, Pacific Hotel Chiang Mai, had on November 4, 2013, attempted to terminate GHM’s management of the property and bring in a new operator, Minor Hotel Group (MHG), rebranding the hotel as Anantara Chiang Mai Resort & Spa in the process.
GHM argues that the takeover was wrongful and in violation of key contractual terms. Through the course of the court proceedings, GHM substantiated its rightful standing as operators of The Chedi Chiang Mai by stating how they have obliged to the initial agreement and performed well as managers by obtaining awards such as being first on Asia’s Best Resort list by Condé Nast Traveler in its Readers’ Choice Awards for 2013.
The resolution saw GHM awarded substantial damages as Pacific Hotel Chiang Mai’s allegations against them were found to be without merit. Due to confidentiality clauses, the amount of damages cannot be disclosed.
“With respect to The Chedi Chiang Mai, the favourable ruling by the tribunal clearly vindicates GHM and affirms our commitment to delivering excellent results with a team that demonstrates the highest level of integrity and management,” said Hans R. Jenni, president of GHM, in a statement.
GHM is no longer the operator of The Chedi Chiang Mai and MHG now operates the rebranded Anantara Chiang Mai Resort & Spa.
