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Palms Resort drops talks with int’l chain to manage the hotel
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Posted on Jan 27 2009
Palms Resort is not going ahead with earlier plans to look for an international hotel company to manage the hotel on behalf of its current owner, the United Micronesia Development Association, according to general manager Mustafa S. Issa.
“We will continue to operate as Palms Resort, as a standalone hotel instead of being part of an international chain of hotel,” Issa said yesterday.
Palms Resort, however, is about to seal a deal with Preferred Hotel of the World, a sales agency representing hotels around the world by taking reservations on behalf of these hotels.
Issa said parties are working out the details of the agreement and may be finalized by the end of February.
“This way, we make sure the hotel will continue to be known as The Palms Resort and we will run it as the best hotel on the island. We can run the hotel and we only need someone to take bookings on our behalf,” he added.
Currently, the hotel has an average occupancy of 55 to 60 percent.
Issa cited other best hotels in the world that are not necessarily part of international hotel chains but are called “standalone” hotels.
“We can have the best hotel in Micronesia that doesn’t necessarily belong to an international hotel chain. For example, the Burj Al Arab or the Arab Tower Hotel, which is considered the only 7-star hotel in the world. It’s a standalone hotel,” he said.
Palms Resort was earlier in talks with an unnamed international hotel chain on a management deal expected to increase its profile by giving a major boost to its marketing campaign.
Under such agreement, the international hotel chain would have managed the hotel but UMDA will retain control of the hotel.
