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Ritz Carlton to lose brand after disagreement
For several weeks, the Ritz-Carlton Bali Resort and Spa has been telling visitors of its official website that the Ritz-Carlton Company will cease managing its Jimbaran hotel as of April 1, 2009
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For several weeks, the Ritz-Carlton Bali Resort and Spa has been telling visitors of its official website that the Ritz-Carlton Company will cease managing its Jimbaran hotel as of April 1, 2009.
Disagreements between the management and the owners has led to a split between the two parties. After 12 years, the Ritz-Carlton Bali will hand over management to Ayana Resort & Spa in April.
The change of management and brand has occurred because of the disagreements between the property owner Rudy Suliawan and Ritz-Carlton's management.
The Ritz-Carlton entered cooperation over recently opened Bulgari Hotel Bali, allowing them to work with the same management standards in, for example, staff training, room division and products. Suliawan did not accept the arrangement.
The owner felt cheated and went to court claiming the management contract was breached by Marriott International and Ritz-Carlton, giving the owner the right to terminate the contract. The owner was awarded US$382,304 in compensatory damages and US$10 million in punitive damages.
"We were told around four months ago about the change of management, but we have already heard rumors (about it) before. So, it wasn't out of the blue," said an employee wanting to remain anonymous out of fear of losing her job.
"Still, some of the employees who have stayed with the Ritz for many years quit immediately when they heard the news."
The Ritz-Carlton employs almost 1,000 people who are, according to the employee, not in danger of being left on the streets after the takeover by Ayana.
"We are employed by an external company, which has been told to step into a new contract with Ayana."
Ritz-Carlton is a brand of luxury hotels and resorts with 70 properties located in major cities and exclusive resort destinations at 23 countries worldwide.
The brand is managed by the Ritz-Carlton Hotel Company LLC, a subsidiary of Marriott International. The company also has marketing agreements with Bulgari Hotels & Resorts.
"We certainly lose a significant brand for the luxury sector of Bali hotels, Michael Burchett, chairman of Bali Hotel Association said.
Bali has a wide range of luxurious five-star hotels, including St. Regis, Anantara, Four Seasons and Oberoi.
The Jakarta Post tried to contact the management of Ritz-Carlton Bali, but had not yet received a reply.
