Kempinski Bahrain management contract terminated
Owner Majid Al Futtaim to appoint two brands to run two-tower hotel
Kempinksi Hotels and Majid Al Futtaim have ended the hotel management agreement for the Kempinski Grand & Ixir Hotel Bahrain City Centre in Manama, effective June 30, 2014.
A new operator has yet to be announced, but Majid Al Futtaim — Properties CEO George Kostas said the two-tower property would be split and managed under two separate brands.
Kostas said: “Our studies of the changing market requirements informed our decision to adopt a two distinct brand strategy for the two-tower hotel in Manama. We believe the new strategy is better aligned with the product and the market demand, and will maximise the yield of the two towers. We will announce the new brands in due course.”
Kempinski, which operates 75 five-star hotels in 32 countries, has managed the Bahrain hotel since September 2011.
Commenting on the contract termination, Kempinsi Hotels president and CEO Reto Wittwer said: “While we regret the end of the management agreement for the Kempinski Grand & Ixir Hotel Bahrain City Centre, we are pleased that Kempinski continues to enjoy an excellent relationship with Majid Al Futtaim, for whom we continue to manage the award-winning Kempinski Hotel Mall of the Emirates in Dubai, U.A.E”.
Majid Al Futtaim will take over the property at midnight on June 30.
The shopping mall, retail and leisure developer owns and operates 17 shopping malls, 11 hotels and three mixed-use communities in MENA, with further developments underway in the region.