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New South Wales Australia Supreme Court Rules 
in Favor of Accor Concerning Early Terminination 
of All Seasons Hotels Management Contracts
Court upholds Accor�s management contracts on All Seasons Frontier Hotels
27 April 1999: A judgement in the NSW Supreme Court confirmed Accor�s right to continue operating three hotels in the Northern Territory.

In a case brought against Border Corporation and other companies involved in the ownership of the three Frontier hotels in Darwin, Katherine and Alice Springs, Justice Windeyer of the NSW Supreme Court concluded that the notices of termination issued to Accor�s All Seasons group were not justified and ordered costs in favour of Accor.
Accor will now continue to manage the hotels under its All Seasons branding.
 

The court ruling followed Accor�s purchase of the All Seasons management company from Thakral earlier this year. The three hotels were under the management of All Seasons at the time of Accor�s purchase of All Seasons, with the contract due to last till mid-2001. Without pre-warning, Accor was issued with termination notices by the owners of the three hotels, which prompted Accor to have the matter determined in the NSW Supreme Court. 

All Season Frontier Darwin Hotel
Darwin NT 0800

Commenting on the decision, Accor Asia Pacific Chairman, Mr David Baffsky, said that he was very satisfied with the court�s judgement.

�All management contracts require the parties to work co-operatively and we see this judgement as an important decision in favour of professional management companies who are contracted to operate hotels on behalf of owners,� said Mr Baffsky.

�There was no reasonable justification for our termination, especially as Accor will be able to bring to the hotels all the benefits associated with being part of Australia�s, and the world�s, largest hotel and tourism company.

�Accor works with a vast range of owners in Australia and elsewhere and our reputation has been built upon offering the highest operating standards and maximising the potential of all the hotels we manage. Now that the court has resolved this matter, we look forward to working with the owners of the three Frontier hotels to ensure the best possible performance of each of the hotels.�

Accor is the world�s largest hotel and tourism company, operating in 140 countries around the world. The global group is a leader in travel, tourism and corporate services with two major international activities:

  • hotels (3300 hotels, including 90 in Australia under Sofitel, Novotel, All Seasons, Mercure, All Seasons, Ibis and Formule 1 brands) and complementary businesses including travel agencies, restaurants and casinos;
  • service vouchers with Accor Corporate Services
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Contact:
Peter Hook 
General Manager Communications - Asia Pacific
Accor Asia Pacific
tel: 612 93670860
[email protected]
Also See: ACCOR Acquires Thakral's All Seasons Hotel Management Business for AU$29 ACCOR Acquires Thakral's All Seasons Hotel Management Business for AU$29 Million / Dec 1999 
Hospitality Litigation News / Taylor & Tuttle / A Law Corporation Specializing in Hospitality / Winter, 1999 / 

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