CAIRO, EGYPT (MARCH 21, 2011) – Hyatt International (Europe Africa Middle East) LLC (“Hyatt”) today announced that it will exit the Grand Hyatt Cairo due to unresolved contractual disputes with the hotel’s owner.
For several weeks Hyatt has been attempting resolution through a series of urgent communications with the hotel owner, Saudi Egyptian Touristic Development Company. Regrettably, resolution of the disputes has not been possible.
“It is unfortunate that the contractual disputes have not been resolved, forcing us to exit this property, but this does not diminish how important Egypt is and will remain to the Hyatt brand,” said Gebhard Rainer, managing director, Hyatt International (Europe Africa Middle East) LLC. “We will continue to operate two Hyatt hotels in Egypt, and are interested in pursuing new development opportunities there.”
The Saudi Egyptian Touristic Development Company has been notified of Hyatt’s exit, effective immediately, due to the contract termination. Hyatt will no longer be involved in the management of the hotel and the owner will no longer be permitted to use the Hyatt brand.
Hyatt began managing Grand Hyatt Cairo in August 2003. Hyatt currently provides management services for two Hyatt Regency hotels in the Red Sea resorts of Sharm El Sheikh and Taba Heights, both of which are owned by entities unassociated with the Grand Hyatt Cairo and are not affected by this action.
Guests who have made reservations at Grand Hyatt Cairo through hyatt.com or the Hyatt reservation center should contact the hotel directly to confirm booking. Hyatt Gold Passport members will no longer be able to receive points or redeem points for stays at the hotel. Additional information is posted at Hyatt.com.
For further information:
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family in 45 countries strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company’s subsidiaries manage, franchise, own and develop hotels and resorts under the Hyatt®, Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt Regency®, Hyatt Place® and Hyatt Summerfield Suites® brand names and have locations under development on five continents. Hyatt Vacation Ownership, Inc., a Hyatt Hotels Corporation subsidiary, develops and operates vacation ownership properties under the Hyatt Vacation Club® brand. As of December 31, 2010, the Company’s worldwide portfolio consisted of 453 properties. For more information, please visit www.hyatt.com.
Statements in this press release, which are not historical facts, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, the rate and pace of economic recovery following the economic downturn; levels of spending in business and leisure segments as well as consumer confidence; declines in occupancy and average daily rate; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; travel-related accidents; changes in the tastes and preferences of our customers; relationships with associates and labor unions and changes in labor law; the financial condition of, and our relationships with, third-party property owners, franchisees and hospitality venture partners; risk associated with potential acquisitions and dispositions and the introduction of new brand concepts; changes in the competitive environment in our industry and the markets where we operate; outcomes of legal proceedings; changes in federal, state, local or foreign tax law; fluctuations in currency exchange rates; general volatility of the capital markets and our ability to access the capital markets. A more complete description of these risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
# # #
Director of Communications
Europe, Africa & Middle East
+33 1 53 45 28 38