RIYADH: 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.
Source: Arab News
