Mgmt. Co. Removed from Cabo Resort for Alleged Improper Operations

CABO SAN LUCAS, MEXICO—Hoteles del Cabo, C.V., owner of The Resort At Pedregal, has removed Capella Hotel Group from the luxury resort (formerly Capella Pedregal) here.

The company alleges Capella conducted “improper financial reporting and diversion of revenues through improper fee calculations,” and was terminated as a result.

Hoteles del Cabo has instituted legal action to recover the alleged misappropriated funds and will pursue its remedies for other defaults under the management agreement.