Orient-Express Hotels Ltd. has long been one of the most highly regarded operators and owners of high-end boutique luxury hotels and resorts in some of the world’s most exotic locales.
But last week the luxury chain said it was pulling out of Bali, one of those exotic destinations, after a change in ownership of the hotel that it manages on that island paradise.
Following what it called “an unannounced repossession” by the third party owner of Ubud Hanging Gardens in Bali, Indonesia, on Nov. 11, 2013, Orient-Express said it would be unable to continue to operate the hotel.
The company also has stopped referring to the property in its sales and marketing materials, including all electronic marketing, until further notice.
At the same time, Orient-Express said it believes that the action by the owner is unlawful and constitutes a wrongful, and potentially criminal, repossession of the hotel, as well as a flagrant breach of its long-term lease arrangement, which it said is in force through August 2038.
Orient-Express said it is consulting with legal advisors and plans to take steps to protect its interests.
Steele Luxury Travel
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