by editorial office, chd

(Heiligendamm, Februar 03, 2009) Today, Kempinski withdrew from its management contract with Grand Hotel Heiligendamm & Co KG, effective immediately. Reasons stated are breaches of contract and failure to pay the management fees of the last two years. In its withdrawal, Kempinski stated that the owner’s continuous interference in hotel operations had obstructed them in their function of effectively exercising their internationally acclaimed expertise in the management of luxury hotels in order to manage the hotel in an economically solid fashion.

Larger investments, such as the development of the Villas by the Sea and a Thalasso and Ayurveda center were not implemented, inhibiting the hotel’s performance.

Kempinski’s considerable effort to resolve the dissension did not lead to acceptable results. Thus, Kempinski had no other choice but to withdraw from the management contract.