Hotels

Banyan Tree terminates agreement with Al Areen

April 13- The renowned Banyan Tree Hotels & Resorts announced today that it has terminated its management contract, effective immediately, for the Banyan Tree Al Areen Resort in Bahrain.
On April 8, Banyan Tree issued a notice of intention to terminate its contract with Al Areen Holding Company, the owner of the resort in Bahrain, given the various breaches that occurred in the contract. It must be mentioned here that the termination of an agreement usually requires a notice with a transition period of two weeks, but Banyan Tree's termination of the management contract is with immediate effect. In this regard, staff, suppliers, travel agents, wholesalers and the resort’s guests have all been notified that Banyan Tree is not responsible for any of the happenings at the resort.
"The termination was supposed to be effective 15 days after issuance of the notice if the breaches were not rectified, and during this transition period, Banyan Tree was supposed to continue to manage the resort as per the management contract," said Ariel Vera, Group Managing Director of Banyan Tree Holdings Ltd. "However, upon issuance of the termination notice on April 8, the owner decided to further breach the contract and immediately took over the resort on the following day. This has resulted in infringements on our brand rights, and inconvenience and confusion to our guests and associates, travel partners and suppliers. We therefore have no choice but to immediately cease our involvement with the resort."

Meanwhile, Banyan Tree will also take legal action against Al Areen for this breach of contract. 

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