Dubai: Several top hotel chains in Dubai have been left counting their losses after a company that handled their loyalty programmes suddenly shut shop without settling dues amounting to millions of dirhams.
The Chilean and Hungarian owners of Hospitality Dynamics, who allegedly owed over Dh2 million to at least three prominent hotel groups, operated from the 21st floor of Mazaya Business Tower (BB2) in Jumeirah Lake Towers (JLT) for five years before they vanished without a trace.
Caught unawares
The unexpected move has not just caught their clients unawares but also the 40 odd staff who are now stranded with visa issues and unpaid salaries. “We had no inkling they would do something like this. They owe nearly two million to three prominent hotel groups, around one million to four banks, several thousands to a telecom operator and DEWA and nearly half a million to their staff besides gratuity,” said a former employee.
A management staff said their bosses emptied the company’s bank account before flying out of the country over the weekend last February.
An email sent to Hospitality Dynamics’ top management by the company’s Chilean CEO read: “As you may have realised things have not gone well in the past couple of months. Extremely poor trading has driven heavy losses that has made it extremely difficult to recover. We made all efforts to ensure that a suitable work environment was maintained and that salaries were paid, many times not taking our own. Unfortunately events have forced us to try to find a solution from outside Dubai. We have tried bringing investor capital and tried other mechanics to attempt to inject capital into HD. None have come through. For now I must request that you stop operations and do your best to find alternative employment.”
Far from convinced
However, the staff is far from convinced. “It’s a terrible situation to be in. Whilst I understand the situation the company was in, there were other alternatives available to the owners rather than just absconding and leaving people in the lurch. I even suggested they file for bankruptcy, however, they chose the coward’s way out. They have also been telling their friends that they have closed the business and that is why employees are upset, not telling the whole truth that they have actually absconded,” said one of them.
According to reports, the CEO was also behind on the rent of his villa and also car mortgage. Emails sent to him and the company vice president remained unanswered.
