by Michael J. Shapiro | November 07, 2014

The owner of the Resort at Pedregal in Los Cabos, Mexico, which removed management company Capella Hotel Group earlier this week, has fired back at Capella, claiming the management company improperly reported and calculated financial data and misappropriated funds. Property owner Hoteles del Cabo slammed Capella's public statement from earlier this week, which claimed the management company was removed without just cause or notice. "Capella responded to their termination by making a public spectacle of a private business matter, issuing a statement claiming to be an innocent bystander caught in an ownership dispute," noted a spokesperson. "In fact, they were terminated for their failure to honor the terms of their management agreement, failures we attempted to resolve in good faith.

"We have spent several months working with Capella Hotel Group to try and resolve the defaults," continued the resort's statement.  "Specifically, Hoteles del Cabo presented Capella Hotel Group with a letter of notice of default on Aug. 14, 2014, that showed various violations, including unauthorized payments to themselves and false financial reports."

Furthermore, claims Hoteles del Cabo, Capella is holding tens of thousands of dollars that were donated by generous patrons to help the resort's employees recover from the effects of Hurricane Odile. "For reasons beyond our knowledge, they have opted not to distribute those funds," said the spokesperson for Hoteles del Cabo. "This is not only unacceptable for the unfortunate families involved, but should be doubly embarrassing in light of the fact that the funds were donated by our guests." For its part, Hoteles del Cabo claims to have distributed US$125,000 in post-hurricane aid directly to the hotel employees. The resort owners also expressed frustration with Capella's failed expansion plans, pointing out that the company has just four other Capella-flagged hotels. 

According to Capella, a New York Supreme Court judge has ordered that Capella be reinstated as the management company at the resort. The property remains closed for reconstruction following Hurricane Odile; the owners expect to reopen it in early 2015.