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Ritz-Carlton Files Lawsuit Against Palm Beach Hotel

Wednesday June 12th, 2013 - 9:51AM

CHEVY CHASE, MD—The Ritz-Carlton Hotel Company announced it would cease managing The Ritz-Carlton Hotel, Palm Beach and 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 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.  According to the company, under Ritz-Carlton's management, the hotel was forecasted to earn millions of dollars in net profit in 2013.

Effective July 1, no Ritz-Carlton Rewards or Marriott Rewards points can be earned or redeemed at the property.  The owner of the property will be renaming and managing the hotel. 

 

—Matthew Marin