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Sun, Oct 12 2008

HOLIDAY INN: Protest Site Targets Franchisee Kronos Hotels

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Related:  HOLIDAY INN: Franchisors Must Protect Their Brands

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We’ve recently been reporting on the woes of troubled Holiday Inn franchisee Kronos Hotels LLC, an Atlanta-based hotel chain founded by its chief executive officer, Malaysian entrepreneur Charles Morais.  A Franchise Pick reader and ex-employee of the hotel directed us to a protest site linking to negative news articles about the franchise group and calling for its demise:  KronosHotelsllc.com

According to Lancaster Online, the woes of the overextended hotel group is worsening:

-  The Lancaster, PA location was stripped of its Holiday Inn franchise Oct. 1.

-  Holiday Inn franchise agreements have been revoked for Kronos-owned hotels, in Lansing, Mich., and Greentree, near Pittsburgh.
-  Lancaster County filed suit Kronos Hotels and Resorts LLC, seeking $38,747.42 in back taxes.
-  “Employees at two other Kronos-owned hotels in Pennsylvania said FBI agents had been interviewing employees at those facilities.”

-  “Dothan (Ala.) Eagle newspaper reported workers at two Kronos-owned Quality Inns there walked out and picketed the hotel because their paychecks have been bouncing.
-  “Cedar Rapids, Iowa, KCRG-TV9 ran a story that said the state’s revenue department is filing additional liens against a Kronos-owned Crowne Plaza Five Seasons to recover $418,844 in back sales taxes.  Friday, police were called to the Iowa hotel when more than 30 employees refused to leave the facility after their paychecks bounced.”
-  “the St. Charles County Convention and Sports Facilities Authority sued the Kronos-owned Holiday Inn Select in St. Peters, just outside St. Louis, to recoup $37,000 in back taxes.  According to KMOV-TV in St. Louis, which broke the story, local banks haven’t been honoring workers’ paychecks. In addition, employees discovered they had no medical insurance, even though premiums were deducted from checks.”
-  “…employees of the Kronos-owned Clarion Inn in DuBois [PA] said their paychecks also bounced Thursday.”
-  “Saturday morning, WMGT-TV in Macon, Ga., reported a Ramada Plaza owned by Kronos in downtown Macon owes $21,000 in property taxes for 2007 and $25,000 to the city of Macon for its hotel/motel tax.  The facility also was without hot water from Oct. 1-3 because it did not pay its gas bill, and the Macon Water Authority said it has almost cut off service three times in the last six months.”
-  “In Sheffield, Ala., Mayor Billy Don Anderson told city council Tuesday his city endorses the utility department’s decision to shut off power to a Kronos-owned Holiday Inn hotel after it failed to pay utility bills, according to the Sheffield Times Daily.”

While Kronos spokesman Peter Mathon blamed the company’s woes on “America’s current financial environment,” employees, the press and industry groups aren’t buying it.  According to reports, Kronos-owned hotels started having trouble “within a month of the company’s purchase of 16 hotels in June 2007, and eight more in April 2008.” 

Employees and industry observers blame Kronos’ woes on overexpansion and poor management.
Information source:  Room at the inn for more violations by Chip Smedley

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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Comments

  1. By Andrew

    wtf is a ride up…no shit these hotels suck they can’t even find people that know it’s a write up…dumbass

  2. By david morais

    THIS IS A SICK GUY. HE IS A COMPULSIVE “FIBBER.” He is also suffering from ” Impotency” and “NARCOLPSY”. He has similarly conned many hospitatilty businessmen in Malaysia with his “fiber deals”. Contact me if u want to know more about this sick con man.

  3. By scrededbykronos

    they are doing the same thing in NY. They owe me $6900 in back wages. Charles ,Sunil and his brother Raj are criminals and need to be stopped. theres a shit load of information about these crooks on kronoshotelsllc.com

    Good luck everyone and God bless

  4. By Ralph Bonawitz

    your right i stand up for my self but they brought MR MIRS SONIA MIRS WIFE IF YOU HAVE FOUND OUT SOME HOW CHARLES AND SONIA ARE FROM THE SAME COUNTRY I THINK THEY ARE RELATED THEY WROTE A 90.000 DOLLOR BAD CHECK TO DOCTOR HAMIT PATEL HERE IN GA WHEN THEY BOUGHT HIS HOTEL IN bYRON gA HE IS HAVEING TO SUE THEM FOR THE REST OF HIS MONEY THEY LIVE IN Ga if any one like there numbers and home adresss please fill to ask i want to know what lawyers other people used so i can help them get there money they owe me for so much money i fill with the eeco on 2-1-10 and now i have file federl hour and wage and get a lawer to file cilvil court in peach county Ga to get my money and prove that the write up they gave me where all lies to get rid of but itaped so many things between us and they have a youn lady sajil patel who lies for them its not even funny they will pay who they want and rob the hard working person of there money

  5. By Ralph Bonawitz

    they are theifs and liers they put there compny in sonia mirs name if you need there home address in Atl Ga please let me no i will give you the address and cel and fax numbers

  6. By Ralph Bonawitz

    My name is Ralph Bonawitz i live in Byron where the Mir bought the Holiday day Inn express i have not been paid over time also they make fake ride ups to try to get rid of people they do not like but they always put there hotel as singel LLC they use venderds and when they owe alot of money they change to another one Miss Mir is Gm who is never there and gets a check. I was told today he was the owner and over his wife but would not write her up. I want to no lawyers they use and tell them about the Group they file bankrupcey on hotels and buy them back at a cheap price what lawyers did they use and they just barrowed 15 million dollors so they have the money can you help me out. Thanks Ralph

  7. By Bernard Christie

    Hi My name is Bernard Christie and i am an employee of Kronos Hotels & Resorts Malaysia / Sorveign Palms I have not receive my salary as well
    and i am looking for Mr Charles Suresh Morais …..well do let me know
    where he is …..thanks

  8. By Sean Kelly

    Heathrow Hotels:
    Thanks for visiting and commenting.
    This situation seems to be typical of Kronos Hotels but not really the Holiday Inn chain. In fact, Holiday Inn disenfranchised the Lancaster, PA property – but not before it did considerable damage to the brand image in the local area.
    In my opinion, HI let this crazy stuff go on too long. You’ve got to protect your brand image or you’ll have nothing to protect.

  9. By Heathrow Hotels

    I had not heard about Kronos Hotels troubles until now. Is it just the Franchise or is the Holiday Group in trouble to?