Struggling Hotel Manager Removed from Iconic Cabo Resort in Mexico for Improper Financial Reporting and Diverting Revenues

The Resort at Padregal, Cabo San Lucas, Mexico

Cabo San Lucas, Mexico – Nov. 7, 2014 - Hoteles del Cabo, S.de R.L.de C.V., owner of The Resort At Pedregal, announced this week the removal of Capella Hotel Group from the resort (formerly known as Capella Pedregal), a luxury hotel in Cabo San Lucas, Mexico.

Capella's termination resulted from improper financial reporting and diversion of revenues through improper fee calculations.  Hoteles has instituted legal action to recover the misappropriated funds and will pursue its remedies for other defaults under the management agreement.

“We have spent several months working with Capella Hotel Group to try and resolve the defaults.” said a spokesperson for Hoteles del Cabo. 

“Specifically, Hoteles del Cabo presented Capella Hotel Group with a letter of notice of default on August 14, 2014, that showed various violations, including unauthorized payments to themselves and false financial reports.”

For a complete copy of the company’s news release, please contact:

Chris Daly (Media)

Daly Gray, Inc.

(703) 435-6293