According to the latest hotel news update, Banyan Tree Hotels & Resorts has terminated with immediate effect, its management contract for the Banyan Tree Al Areen resort in Bahrain.

On 8 April 2010, Banyan Tree issued a notice of intention to terminate as a further step to its earlier petition in March to wind up Al Areen Holding Company, the owner of the resort, for what it calls “continuing breaches of the management contract”.

Termination of an agreement usually requires a notice with a transition period of two weeks, but Banyan Tree’s termination of the management contract is with immediate effect.

Notices have been sent to all staff, suppliers, travel agents and wholesalers, and hotel guests, that Banyan Tree will not be responsible for anything happening at the resort, nor for any loss, damage, costs, expenses or other claims arising from any stays, transactions with, visits to or usage of the services and facilities of the resort.

Banyan Tree has said it will be taking legal action against Al Areen.