PALM BEACH, Fla.
The Ritz-Carlton Hotel Company has announced it will cease managing The Ritz-Carlton Hotel, Palm Beach as of July 1. Effective on that date, no Ritz-Carlton Rewards or Marriott Rewards points can be earned or redeemed at the Florida property.
In connection with its departure, Ritz-Carlton also said that it 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 categorically 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. In fact, under Ritz-Carlton's management, the hotel was forecasted to earn millions of dollars in net profit in 2013.
The owner of the property will reportedly be renaming and managing the hotel.
