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Posted: 09 Aug 2014 | 6:40 am
One of Phuket's legacy hotels, Club Med in Kata has averted a near disaster.
Recently the property has been embroiled in a dispute over a small section of beachfront real estate with local groups.
The situation grew worse once Club Med attempted to construct a perimeter fence around the area not long ago.
Timing could not have been worse given the hotel's thirty year lease which commenced in 1985 was set to expire next year, jeopardizing the entire property.
As reported in the Phuket Gazette, a compromise solution has now been reached with the landlord, the PPRO (Phuket Provincial Administrative Organization).
Under the new arrangement the hotel will turn the three-rai beach area that is under dispute into a public facility and maintain the area.
In return the lease of the hotel is being renewed, though the annual lease has been increased from THB3 million a year to THB27 million annually.
Sounds like a win win for both parties and Phuket will be able to benefit from the continued presence of the Club Med brand.
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