The Ritz-Carlton Budapest has been rebranded, and I just don’t see this ending well based on what has been revealed so far (assuming the goal is to make money, or lose as little money as possible)…
Continue reading: Odd: Ritz-Carlton Budapest Rebranded As Al Habtoor Palace
Share your questions, experiences, and thoughts below.
I would say that it sounds like Al Habtoor could be a good fit for the GHA, albeit they do already have significant presence in both BUD and the UAE.
Stayed at the Intercontinental there last summer using a free night certificate and it is in dire need of a refresh. The location and views are amazing, but it felt like it hadn't been touched up in 20 years. The FS next door exasperated that even more.
"As of January 6, 2025, the Ritz-Carlton Budapest has been rebranded as Al Habtoor Palace Budapest. Rather bizarrely, as of now the property continues to be bookable through Marriott channels as a Ritz-Carlton, even though that branding no longer applies, and Marriott is no longer managing the property."
That suggests there was or is some kind of dispute between the owner and Marriott International.
Especially since the only news item (besides this blog) is an English language article on an Arab news website. There isn't even anything in Hungarian. Meanwhile, the Ritz-Carlton Budapest Facebook page was last updated December 30.
Wow - what a bummer. Literally just booked the RC Budapest last night for a stay over Memorial Day weekend. Marriott website still let everything book normally as if a Bonvoy property. I did some additional research and Al Habtoor has a shadow website set up for Al Habtoor Palace Budapest with same room types, etc. What a shame - I read incredible things about the Club Level and loved the location but am not going to spend that kind of coin if not getting points or any kind of perks.
Perhaps there is a larger strategy at play here. What if Habtoor Palace wants to become an entirely new hotel chain? With 10 more Habtoor Palaces worldwide, it could pretty much become its own brand. Losing x% of business from Marriott in the coming years does not necessarily mean failure. It could be an investment that pays off tenfold over the next decade.
What is the best Marriott in Budapest now, the new W? I had hoped to try the R-C on points next year.
"But I think it’s delusional to think that going independent won’t lead to a massive dip in revenue."
Is it though? When you're caught up in the miles and points game, it's easy to forget that there are a vast number of independent hotels, of all sizes, operating successfully.
Selling based on affiliation to a global brand is just one possible business model. The royalties you pay to use a global brand, and everything that comes with that, is a substantial expense.
This episode illustrates that property owners simply lease a brand name. Over the last 10 years, this property has had three brands. Such a thing is not uncommon. Non-compliance with brand standards are not necessarily enforced. In the end, brand means nothing. Even being within a common ownership group means nothing. One must assess each property individually.
It would suggest the owner has a problem with management companies. So he's decided to assume direct management.
You don't need a big international chain if you're the best or one of the best luxury hotels in a market. But you most certainly need the chain if you're only a mediocre or average hotel in a city full of hotels.
Well, now we know the real reason:
In an exclusive interview in the fall, he also revealed to ATV that he had invested in a major development in Törökbálint, and that he was in litigation with the Marriott Group over the termination of his management contract for The Ritz-Carlton in Budapest, and was also demanding significant damages from the hotel conglomerate. Arab News is suing Marriott International in this case, but the company declined to comment on the dispute that has reached the court stage.
So, it's what I suspected. Reminds me of the Marriott in Warsaw.
"Al-Habtoor, who owns several international hotels, is also in a lawsuit against Marriott over the termination of the contract, and is also demanding a significant amount of compensation, but he did not tell Arab News, which reported on the case , exactly why . The details of the case were not made public, but the businessman was allegedly dissatisfied with Marriott's hotel management."
Agreed. There's something called social consanguinity. In essence, birds of a feather. This property's owner is Middle Eastern. Those traveling from the Middle East to Budapest might be drawn to that. This effect occurs with the Dorchester Collection, which is owned by the Sultan of Brunei.
Vanity project/flagging for the family. Maybe he will do a deal with Trump who also likes his name on things.
There aren’t enough wealthy traveling Brunei nationals to fill Dorchester hotels most of the year.
These are investments, vanity projects and/or brand recognition plays for some party or another.
It's not a fee. With two or three exceptions (Montreal, Chicago and, I think, Kuala Lumpur), Marriott does not license or franchise Ritz-Carlton. You are required to hire Marriott to operate the property. So, there are lots and lots of fees involved.
And a lot of hotels make more money on banquets and catering events than rooms. I'd argue most convention center, trade show, and downtown urban core hotels probably aren't profitable on room rate revenue.
Maybe I'm the weird one here, but I really don't think most people know about or pay any actual attention to companies/families that own a given hotel, unless it's a family friend of theirs that's offered them a discount or other perks, or they run travel arrangements for their business and have contracts with the hotel owner, or if the owner has been well-publicized in the news for one reason or another.
Oh no got some good value here couple years ago during a summer trip using multiple Marriott 35k certificates for nights at this Ritz when cash rates were just around $500/night!
I don't know about Singapore. But I thought YTL had a license to own and operate the Ritz-Carlton in Kuala Lumpur. I know Chicago and Montreal are both licensed. I believe the rest of the Ritz-Carlton property is not.
I don't know about that because many people think the Marriott family not only owns and controls the company but owns and operates all the hotels under every brand. I would agree that most people probably don't understand that with some notable exceptions most hotels are operated under a franchise or license agreement. There's a reason why Starbucks doesn't franchise.
So, now it's confirmed. The "odd" reason for the property's exit is litigation/arbitration between Marriott and the owner. Presumably, it's over fees, management practices or perhaps a clause in the agreement that gave him a geographic franchise and he feels Marriott has undercut him by opening new hotels within the same market.
Isn't not Brunei nationals. I can tell you from direct personal knowledge that Muslims of many nationalities choose the Dorchester Collection because of the ownership.
I got Bonvoyed on this yesterday. Had a reservation in March. Got an email confirmation of my booking at the Dorothea. Wasn't till hours later that I got an email explaining it. They changed my booking but not my rate. The Dorothea was 7K points per night cheaper, so I had to call to have them refund that. From what I hear now the Dorothea is actually a better property.
@Fred - I googled "social consanguinity" and it means marrying someone closely related... how does this relate to The Ritz Carlton Budapest?!
This is the kind of property that would do well under the Preferred Hotels & Resorts umbrella. I wouldn't be surprised to see them show up in that collection.
They generally aren’t picking hotels in the group because of Brunei-ownership. They are picking hotels because of the reputation of being very upscale or bling bling bling.
Wealthy Arabs — royals and business folk — staying in Europe generally take no signals from SE Asian royalty regardless of religion.
The faded glory of the city.
The bizarre politics if the government.
The language barrier.
The competition in this market.
….. seems the investment is a bad one.
Buy low, sell high works better!
Starbucks does not franchise. They do offer limited licenses, which is what you're thinking of.
Stayed at the Ritz Carlton last year. It could not have been a more perfect stay. Just the right size, great location, and superb service. Sorry to see it leave the brand
If this were purely a one-off change, I’d definitely say it was an issue with Marriott. But the fact they’re breaking ties and branding with their own name in multiple locations and breaking with multiple brands indicates it’s a conscious effort to create their own identity.
Now it’s entirely possible they have a well researched plan to build a brand, but it’s equally likely that this is a move based on pure hubris and vanity, with nobody inside the investment group willing to say no to the boss(es).