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Ritz-Carlton departs Palm Beach Hotel, files multi-million dollar claim against owner

CHEVY CHASE, Md. – The Ritz-Carlton Hotel Company, L.L.C. said today it would cease managing The Ritz-Carlton Hotel, Palm Beach as of July 1.

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CHEVY CHASE, Md. – The Ritz-Carlton Hotel Company, L.L.C. said today it would cease managing The Ritz-Carlton Hotel, Palm Beach as of July 1. The owner of the property will be renaming and managing the hotel. Effective July 1, no Ritz-Carlton Rewards or Marriott Rewards points can be earned or redeemed at the property. In connection with its departure, Ritz-Carlton also said that it has filed a multi-million dollar counterclaim against the owner, RC/PB Inc., for breach of contract.

Ritz-Carlton noted that the court in the pending litigation filed by RC/PB permitted the owner to take over the hotel even as it dismissed the vast majority of the owner’s claims, but that the court also stated that such action would subject the owner to breach of contract damages claims. Ritz-Carlton categorically refuted the owner’s claims relative to the management of the hotel, saying that for the 22 years Ritz-Carlton has managed the hotel it has always passed the contractual performance test. In fact, under Ritz-Carlton’s management, the hotel was forecasted to earn millions of dollars in net profit in 2013.

Ritz-Carlton has been an active and contributing member of the Palm Beach community, and has managed the Palm Beach hotel with distinction, in the process earning accolades from a range of trusted luxury travel experts, including AAA, Forbes, Travel + Leisure, Conde Nast Traveler, Spa Finder and US News and World Report. The exemplary service and hospitality provided by the ladies and gentlemen of the The Ritz-Carlton have kept the company atop the J.D. Power and Associates Hotel Guest Satisfaction Study for Luxury Hotel Brands for three consecutive years.

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