Swissotel Hotels & Resorts, the Zurich-based hospitality chain, is pulling out of its five-star deluxe resort at Calangute in Goa within six months of launching the property.
The hotel will be renamed and operated by the Bangalore-based asset owner, Convention Hotels India Pvt Ltd (CHI).
Officials of both CHI and Swissotel could not be reached for a comment.
According to Swissotel’s website, as of September 9, 2013, Swissotel Hotels & Resorts will no longer manage Swissotel Goa. The hotel will be renamed and operated by the owner.
Recently, Shangri-La Hotels, the hotel operator, and Pallazzio Hotel & Leisure, the asset owner, had mutually agreed to end their management contract for the hotel atop the Palladium Mall in central Mumbai.
Swissotel Goa was launched amidst great fanfare in March 2013, and, in most likelihood, is the shortest owner-operator alliance the Indian hospitality market has seen thus far.
CHI is currently developing four hotels in the country with a guestroom inventory of 715 keys. The development pipeline includes a 35-room tented resort at Kabini (Bangalore), a 220-room Holiday Inn hotel in Goa to be managed by Intercontinental Hotel Group (IHG), a 200-room Hilton Garden Inn to be managed by Hilton Worldwide and a 260-room Hyatt Place hotel in Bangalore that will be managed by Hyatt Hotels & Resorts.
Industry experts said the Indian hospitality market may see many asset owner-hotel operator relationships turn sour due to differences over the running the operations and expected returns on investments.
Industry sources said the deal between Shiva Satya Hotels, which is developing a five-star hotel in Ahmedabad, and international hotel operator IHG, which was to mange it under its Crowne Plaza brand, may be called off.
The management agreement was signed in August 2008 and the hotel was scheduled to open for guests in 2010. However, the project has got delayed and there is no clarity on its completion timeline.
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