Shangri-La hotel chain abandons the plan to open its first hotel in Vienna. At present the future of the five-star hotel in the heart of the capital of Austria, which was planned to be opened on May 2011, looks hazy.
Austrian developer - Bauträger Austria Immobilien Company - said that the refusal of Shangri-La to continue the project was "an absolute surprise."
According to the representatives of Bauträger Austria Immobilien, pre-contract cannot be left in its current state.
For Shangri-La opening of a new hotel in Vienna was to be the next step in the expansion of the European market. Not so long ago, Shangri-La presented its first hotel in Europe, which was opened in Paris. Vienna was to become the second city of the EU, where would have to be opened another hotel of the chain.
Hotel in Vienna, from which refused Shangri-La, is located on one of the main city streets - Shubertring Boulevard. Its capacity is 207 rooms. One of the main highlights of the hotel was supposed to be a huge swimming pool.
Construction of the hotel has been conducted over the past seven years. During this time Bauträger Austria Immobilien invested in the construction about 100 million euros.
Shangri-La became a member of the project in 2007. The company then signed a contract to open a hotel with Bauträger Austria Immobilien. Austrian developer planned to build five-star hotel on the site of four buildings that Bauträger Austria Immobilien bought in 2005.
As noted by the portal hotelchatter.com, one of the reasons for refusing of Shangri-La from the contract could be the poor quality of building constructions.
Shangri-La is one of the largest hotel chains in Asia, which manages 67 hotels. After several successful years in China, Malaysia and other countries in South-East region, Shangri-La began to develop its network in Europe. In addition to the hotel in Vienna, the company in the near future will present new luxury hotels in Moscow, London and Istanbul. The opening of the Moscow Shangri-La hotel is scheduled for 2013.