Arab News was informed by the Dubai-based conglomerate that Marriott International is the target of an arbitration dispute brought by business behemoth Al Habtoor Group.
The firm is requesting significant compensation in addition to seeking to end a management relationship with the massive hotel chain.
A representative for Al Habtoor Group informed Arab News that the arbitration lawsuit was filed via its Budapest-based company.
“To terminate the management agreement of the Ritz Carlton Budapest and claim high compensation,” they continued.
The group acknowledged that the specifics of the arbitration process will be kept private.
Marriott International was contacted by Arab News through the press office regarding the arbitration case; however, the firm has not replied to many emails.
In an arbitration case, a disagreement is settled by one or more arbitrators—neutral third parties—outside of the judicial system. In contrast to conventional court litigation, the arbitrators’ ruling is typically final and enforceable, offering a private and frequently expedited resolution.
Budapest is home to a sizable portion of the real estate, hospitality, and automobile industries’ Al Habtoor Group. Since arbitration is usually attempted after negotiations and other modes of resolution have failed, the decision to arbitration signals a substantial escalation in the conflict.
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