Hong Kong-based hotel operator Shangri-La Hotels and Resorts and Mumbai-based Phoenix Mills have 'mutually' agreed to terminate the management contract of the latter's five-star hotel in Mumbai, just nine months after the hotel became operational.
"Shangri-La International Hotel Management and Pallazzio Hotels and Leisure have mutually decided to end their relationship and Shangri-La will withdraw from the management of the Shangri-La Hotel, Mumbai," a spokesperson for Shangri-La told ET.
Pallazzio Hotels is a subsidiary of Phoenix Mills, which owns the 40-storeyed luxury hotel in the Phoenix Mills compound in Lower Parel, Mumbai.
Shangri-La will withdraw from the management of the hotel on September 6. "The hotel will be handed over to the owning company on September 6 and will no longer be part of Shangri-La Hotels and Resorts," the spokesperson said.
Shishir Shrivastava, joint managing director and group chief executive officer of Phoenix Mills, confirmed the development to ET.
Both Pallazzio and Shangri-La, however, declined to comment on the reason behind the termination of the 20-year contract within nine months. The mutual decision, however, means there will be no penalties involved.
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