Hotel Franchise:
Indictment Not on Us
Sep 8th, 2009 | By Greg Hazley | Category:
On tap
InterContinental Hotels Group, which franchises Crowne Plaza hotels, is distancing itself from the indictment handed down against the Secaucus Crowne Plaza hotel last week, saying its licensing agreement with the hotel’s owners require them to follow all government laws and regulations.
“While IHG is very concerned about the reported health and environmental violations at 2 Harmon Plaza, IHG does not have the responsibility for responding to any such violations,” Caroline Counihan, senior media relations manager for IHG, said in a statement to eSecaucus.com.
The New Jersey Attorney General’s Office announced the indictment last week, charging the hotel’s owners – RD Secaucus LLC and parent RosDev– with polluting the Hackensack River.
IHG said that if it finds the franchisee was not in compliance with its obligations under the terms of the IHG license, it will investigate and “determine what actions would be appropriate.”
IHG said it will not comment further since the litigation is ongoing.
RD Secaucus LLC has owned the hotel since 2004 when its corporate parent, RosDev Group, of Canada, bought the property. RosDev owns another Crowne Plaza hotel in Montreal and three Holiday Inn hotels north of the border, among other real estate holdings.
The owners could potentially face millions of dollars in fines as a $75K penalty could potentially be levied against each act of pollution. The state alleges the illegal acts took place from January through July of this year.




[...] InterContinental Hotels Group, which franchises Crowne Plaza hotels, has distanced itself from the charges. [...]