JSN Development Group Limited (“JSN”) of Antigua and Barbuda announced today that its flagship newly opened US$100 Million property, Hodges Bay Resort & Spa on the northwest shore of Antigua has severed its relationship with Elegant Hotels Group PLC (LON:EHG) of London and Barbados and it is no longer under management contract with them.
JSN terminated the agreement today with their lawyers, CANDEY, alleging repudiatory breach of contract, accounting failures and financial negligence.
JSN has taken over direct and immediate management of the resort to elevate the level of service to the highest levels of luxury that they and their guests can expect from the Caribbean’s leading hotel.
All pending reservations will be fully honored by the resort.
Elegant says it currently has around $1.7 million balances outstanding in relation to Hodges Bay. It has stressed the situation will not affect its full-year outlook for 2019 or 2020.
“The company confirms that, although the operating term of the management contract has not commenced, it has now received a termination notice in relation to the management contract,” said Elegant in a statement to the stock market.
“The company disputes the validity of this termination notice and intends to take all action necessary to preserve shareholder value. The company can confirm it has approximately $1.7 million balances outstanding in relation to Hodges Bay; $1.5 million in the form of a loan to the Hodges Bay management company, and $0.2 million unpaid technical service fees.
“Under the terms of the management contract, the loan is now immediately repayable to the company following receipt of the termination notice.”
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Hopefully can rebrand it with a truly globally recognised hotel and resort name like: Marriott, Intercontinental, Four Seasons or Hyatt.
Mr PM please step in or send the minister to assist in this matter.
Tourisim is our main industry, and this new property is important to the big picture.
Obviously the owners outsourced management because they were probably not in the best position to manage a new unknown brand.
Now they trying to do it on their own this experiment will be disasterous. And will affect the nation’s bottom line.
And probably damage the Antiguan and Barbudan brand.
Please go check to ensure they have the necessary expertise to deliver a high level of service and value.
Do not ignore this situation……
What is the Antiguan and Barbudan brand of Tourism to be damaged?
Boss so the #1 brand in the EC is nothing in your eyes. Just telling how some of our people just trample on their own nation. Your thinking is clear evidence on why we need to do a better job at getting nationals via our educational system to love their country https://www.youtube.com/watch?v=EtkqTEEzEB8
I’m an Antiguan living in The United States who has been working for over 40 years in the airline and hotel industries both in Antigua and in New York. I’m a member of ASTA the American Society of Travel Agents. This is very embarrassing and not a good look for Antigua’s tourism. All ASTA members have already been informed of Elegant Hotels discontinuation of management of this new property. I strongly suggest that the government should approach repeatable hotel groups with large financial and marketing backgrounds like Four Seasons Hotels from Canada, Riu or Melia Hotels from Spain to manage the property. The ANU government also have to start investing more money and aggressive marketing campaigns to effectively promote tourism to the island as islands like St. Martin, St. Lucia, Barbados and St. Kitts & Nevis does to promote tourism to their islands. Airlines increase the flight schedules based on supply and demand. All of the islands mentioned have more daily non-stop flights from the US and Canada to their islands that to Antigua.. Elegant Hotels operate many properties in Barbados and St. Lucia with no problems.
Better join with Sunwing. They have the infrastructure and the clientele to fill your proterty.
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