Congratulations to Ms Pearse, client of The Nordic Consulting, on her court victory, breaking their rental contract with Excel Hotels & Resorts. Excel was ordered to cancel the contract and to give possession of the apartment back to the owners, free of occupants. In addition, the plaintiff was ordered to pay the costs of the court case.
The hotel management company does not own the apartments, but leases them, typically from private individuals. However, the company´s lawyers were not able to prove that apartment owners had been paid the correct amounts on time.
Excel has repeatedly failed to pay owners the amount they were promised in their contracts. The company has given various excuses, such as having a new owner, that are simply not valid. As a result of the non-payment, apartments that have these contracts have been difficult to sell and have a lower valuation on the open market compared to apartments that are not linked to the hotel exploitation.
The Nordic Consulting has many more similar cases that are due to be heard soon by court. Many apartment owners are choosing to initiate legal action now, because they are not convinced that the hotel will hand over the possession of the apartment when the contracts expire, typically at the end of 2022.