Arab News, Sat, Jun 22, 2024 | Dhu al-Hijjah 16, 1445
Al Habtoor Group initiates arbitration against Marriott over management agreement termination
Saudi Arabia:
Business giant Al Habtoor Group has filed an arbitration case against Marriott
International, the Dubai-based conglomerate confirmed to Arab News.
The corporation is seeking to terminate a
management agreement with the hotel giant and is pursuing substantial
compensation.
Al Habtoor Group’s spokesperson told Arab News
that the arbitration case was lodged through its subsidiary in Budapest.
They added that the objective is “to terminate the
management agreement of the Ritz Carlton Budapest and claim high compensation.”
The group noted that the details of the
arbitration proceeding will remain confidential.
Arab News contacted Marriott International via the
press office for comment on the arbitration case, but the company has yet to
respond to a number of emails.
An arbitration case is a legal process where a
dispute is resolved outside of the courts by one or more neutral third parties,
called arbitrators. The arbitrators’ decision is usually binding and
enforceable, providing a private and often quicker resolution compared to
traditional court litigation.
Al Habtoor Group, a prominent player in the
hospitality, real estate, and automotive sectors, has a substantial presence in
Budapest. The move to arbitration indicates a serious escalation in the dispute,
as this course of action is typically pursued when negotiations and other forms
of resolution have failed.
Marriott International, headquartered in Bethesda,
Maryland, is one of the world’s leading hotel chains, operating and franchising
a broad portfolio of hotels and related lodging facilities. It has a prominent
position and manages several highly successful properties across the MENA
region.