Millennium Hotels MEA takes legal action against Saudi hotel owner

This follows Makkah Construction's announcement to end agreement with Millennium and Copthorne

Millennium Hotels and Resorts MEA operates 4067 keys in Saudi Arabia
Millennium Hotels and Resorts MEA operates 4067 keys in Saudi Arabia

Millennium is taking legal action against the owner of Makkah Millennium Hotel and Towers hotel, a statement has revealed.

This follows Makkah Construction and Development Co's announcement  earlier last week that it has terminated any contracts with its subsidiary in Makkah City, Millennium and Copthorne Middle East Holdings Limited company, accroding to Zawya news outlet. 

According to the statement by Millennium Hotels & Resorts MEA, Makkah Construction, the owner of Makkah Millennium Hotel and Towers, had, “unlawfully, and in contrary to the terms of the operating and management agreement, interfered with the exclusive rights of Millennium in the management and operation of the hotel and towers”.

The hotel group also said it is “confident in the Saudi judiciary system in the protection of rights and imposing justice”.

In the statement, the company confirmed its exclusive rights to manage and operate Makkah Millennium Hotel and Towers without interference from the owner or others.

The hotel company also said that it had “addressed its guests with deep regrets for the inconvenience they might have encountered during their stay at Makkah Millennium Hotel and Towers”.

It is not clear at this stage what inconvenience guests may have faced during their stay at the hotel.  Hotelier Middle East has contacted Millennium Hotels & Resorts MEA to find out and is still waiting for a response.  

Zawya news outlet also said that Makkah noted that it has notified Millennium and Copthorne with the decision of ending this contract, according to a bourse filing on Thursday [13 june 2019].

The nerws outlet said that the Tadawul-listed company aims at appointing another international hotel operator to meet Makkah’s objectives.

It reported that work is still ongoing in the hotel and towers which are being operated and managed by Makkah, the company said, adding that no negative impact should reflect on Makkah’s financial statements after ending the deal with Millennium and Copthorne.

Currently, Millennium Hotels and Resorts MEA operates 4067 keys in Saudi Arabia.

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