NY's Supreme Court Orders Reinstatement of Capella Hotels as Management Company for Capella Pedregal

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. November 11, 2014

ATLANTA - November 11, 2014 - Atlanta based Capella Hotel Group (CHG) has advised that a New York Supreme Court Judge has ordered that Capella Hotels and Resorts be reinstated as the management company of Capella Pedregal, Cabo San Lucas, effective immediately.

Despite this ruling, CarVal Investors (CarVal), a co-owner of the Capella Pedregal, Cabo San Lucas has persisted in making baseless allegations against CHG with the intention of damaging the company's reputation and its standing in the hospitality industry.

"We are very disappointed with CarVal's actions, especially after the ruling handed down by The Supreme Court of the State of New York," said Horst Schulze, Chairman and CEO, Capella Hotel Group. "We refute all their claims as inflammatory and intentionally misleading. Capella has acted with the utmost integrity in this matter and with the best interests of its employees and guests in mind. Our top priority has always been to create a world-class resort and we believe that when all the facts are known, it will be evident that we have fulfilled every aspect of the management agreement with property ownership."

"We are also extremely disappointed that CarVal has to date refused to return possession of the property to Capella as ordered by the Court. We intend to fully enforce our contractual rights as per the order of the Supreme Court of New York."

Taking exception to a particularly egregious and false claim that CHG has held donations raised to help Capella staff affected by Hurricane Odile, Schulze further added: "Immediately following the storm, an Employee Relief Fund was set-up on GiveForward.com. In order to distribute these funds outside the US, the hotel was required to register with the Mexican government for that purpose, ensuring that the funds would not be distributed to a company or a single individual. That registration was finally received and the funds were to be transferred this week. CarVal's illegal takeover of Capella Pedregal has hindered the disbursement of these funds as originally intended."

"Under CHG's management, Capella Pedregal has proven to be a strong presence in the building of a positive tourism image for Cabo San Lucas and in making a valuable contribution to the local economy," said Schulze.

About Capella Hotels and Resorts

Capella Hotels and Resorts serves today's top-tier travelers and residential property owners and is setting a new standard in the hospitality industry. Capella promises the unique benefits of the finest, intimate hotels, including superb architecture and interior design, privacy, individualized service and attention to detail - combined with the amenities and activities of the world's great luxury hotels and resorts. Capella is a brand focused on customer choice and a high-level of personalized warm service that no other luxury hotel company in the world can match. Capella has opened world-class properties in gateway cities and high-profile resort destinations around the world, including: Breidenbacher Hof, a Capella Hotel (Dusseldorf, Germany); Capella Ixtapa (Ixtapa, Mexico); Capella Pedregal (Cabo San Lucas, Mexico); Capella Singapore (Sentosa Island, Singapore) and Capella Washington, D.C., Georgetown.