| December 2, 2003 - The High Court
of Singapore today handed down a guilty verdict against Starwood Hotels
for breach of a non-circumvention agreement on a Bangkok hotel with Asia
Hotel Investments.
The breach was with regards to an agreement
signed between Asia Hotel Investments and Starwood in connection with Asia
Hotel�s proposed purchase of a majority stake in Grand Pacific Hotel in
Bangkok, now known as Westin Grande Sukhumvit.
| Asia
Hotel had signed an agreement to purchase the hotel and have it managed
by Starwood. Under the terms of the agreement, Starwood bound itself for
a period of 12 months not to deal with or enter into any management contract
with owners of the hotel.
The agreement was set to expire on
November 9, 2002. However, on May 15, 2002, Starwood signed a management
agreement with a potential buyer who is a Starwood hotel owner. This was
clearly in breach of its existing agreement with Asia Hotel.
|
The Westin Grande Sukhumvit Hotel
(formerly the Grand Pacific
Hotel)
259 Sukhumvit Road
Bangkok 10110 Thailand |
Gary Murray, President of Asia Hotel said:
�We are happy that the court has ruled in favour of Asia Hotel and found
Starwood guilty. Taking Starwood to court was a last resort for us and
the first time that we have been driven to do so with a hotel management
partner.
�In fact, we have an excellent relationship
with all our partners which includes Hilton International and other international
operators. We had hoped to develop similar win-win situations with
Starwood that would be long term and mutually beneficial.
�As a hotel investor we take risks
everyday but we had never expected that it would turn out this way especially
with a large international and public-listed company like Starwood. It
has been very disappointing.�
Moving forward, Asia Hotel is focusing
its attention on current developments and to expanding its hotel and resort
business beyond Thailand to include the Philippines and other resort markets
in South-east Asia. Its golf course business has also seen rapid
growth and Asia Hotel expects to begin work on several large real estate
leisure development projects around its Muang Kaew and Sriracha golf clubs
soon, according to Mr Murray.
After a multi-million-dollar renovation
in 2002/03, Muang Kaew has now been rated #1 in Bangkok and #2 in all of
Thailand by the Thai Golfers Association. The Sriracha Golf Club
is currently being renovated and will be positioned as one of the top golf
clubs in the Pattaya area. The firm is also developing a trendy
chic New York style hotel in downtown Bangkok which is expected to open
at the end of 2004.
Asia Hotel Investments is in the business
of investing in four- and five-star hotels and golf courses in Southeast
Asia. The Company identifies suitable hotels, secures majority control
and puts together a program to renovate, re-brand, reposition and secure
professional management.
Asia Hotel and its principals have
completed hotel development and investment transactions with Marriott International,
Hilton Hotel Corporation, Hilton International PLC, and Holiday Inn.
It owns the Hilton Hua Hin Resort & Spa which it purchased in 2000,
renovated and rebranded as a five-star hotel. Through its subsidiary
Siam Golf Properties Co Ltd, Asia Hotel also owns and manages the Muang
Kaew Golf Club in Bangkok and Country Club and Sriracha International Golf
Club in Pattaya. |
