Rydges Darwin Airport – Booking Under False Pretences

[vetrade]

Should hotels disclose if they have been sold when you make a booking with them?

As a Priority Guest Rewards member I booked online with Rydges at the start of Feb for a stay in August at the Rydges Darwin Airport Hotel. Wouldn’t normally book that far in advance but wanted to be sure of a room as we fly in at midnight. Paid $173/n upfront - non-cancellable.

Last night I wanted to add a couple of bookings for later in our trip and noticed that Rydges Darwin Airport had disappeared from hotel booking sites. Googled it and found an article in Aust Business Traveller dated Dec 2015 stating that “my” hotel was to be taken over by Novotel in March 2016 and refurbished. Novotel is advertising “my” room for $167 (prepaid) with b’fast included.

A few things annoyed me about this:
No notification of the change of ownership from Rydges.
What’s the status of my booking? Presumably Novotel will honour it but my contract is with Rydges so maybe Novotel can choose not to. At a minimum Rydges should communicate what’s going on.
What about my PGR perks – 20% off meals, best price guarantee etc.?
Can I cancel my non-cancellable Rydges booking and get a refund?
Will the Novotel be in the midst of refurbishment work in August – don’t want to stay at a building site?

Waiting for a response from Rydges but interested to know what their obligations are.

 

[Anna]

my contract is with Rydges

I expect that as part of the sale, all existing bookings have been transferred to Novotel so your contract is now with Novotel either by novation or some other legal mechanism.

If Novotel want to enforce the 'non refundable' part of the contract then I think you have a good argument that they also have to abide by the other parts of the contract that you had for special benefits. Novotel can't just enforce the bits that suit them and ignore the other bits.

 

[CMA222]

.....Novotel can't just enforce the bits that suit them and ignore the other bits.

I agree with Anna. Rydges and Novotel cannot agree to be bound by those parts of the contract that suit them and to ignore those parts that do not suit them.

The contract you entered into with Rydges had certain agreed terms and conditions such as prepayment and the provision of a room on a predetermined date. I expect that there will be some general T’s and C’s somewhere that Rydges will rely on that say they can assign their rights to your booking to anyone without your permission and they will have done that when they transferred it to Novotel. Novotel would then have received the funds you have paid Rydges and Novotel will supply the agreed room on the agreed date. Novotel will honour the original contract.

Your PGR perks are separate contractual benefits and Rydges will no doubt also have some T’s and C’s somewhere that allows Rydges to withdraw them or not supply them if circumstances require.

The issue is that you entered into a contract with Rydges and that included an expectation that your PGR benefits would be available and that was a significant inducement that influenced you to enter into the contract for the accommodation. Presumably you entered your membership number in the booking so Rydges were aware you were entitled to benefits as part of your booking.

If Novotel cannot or will not provide the equivalent benefits (or compensation) that is probably a breach of the contract you entered into, entitling you to rely on their breach to bring the contract to an end and demand a refund.

There are potentially also issues under the Australian Consumer Law about the goods / services supplied not being as represented or significantly different from what was contracted to be supplied.

 

[vetrade]

Thanks Anna and CMA222. Much as I expected but good to get the informed legal reasoning.

Rydges reply:
"Please be advised we no longer control the booking rate as this hotel is no longer owned or operated by Rydges Hotels & Resorts, you will need to contact the hotel directly if you wish to amend your booking.

As the hotel is no longer owned or operated by Rydges Hotels & Resorts, this hotel is no longer affiliated with PriorityGUEST Rewards membership benefits will not be applicable during your stay."

No surprises there - they obviously regard the Darwin Airport Hotel as yesterday's problem.

Now waiting on a reply from Novotel.

 

[Awesom Andy]

Generally speaking, in this type of cases, all bookings will be honoured as per the original contracts. However, any status benefits with the previous chain will not apply to the new chain. From time to time, the new chain may choose to honour status from the old chain as goodwill, but they can also choose to do absolutely nothing in terms of status.

 

[defurax]

When the Crowne Plaza became a Hilton in Darwin I had a prepaid booking at the Crowne. I received an email after the transfer if ownership telling me I could cancel my booking and be refunded if I wasn't happy. I kept my booking and got upgraded to Executive room with lounge access.

 

[vetrade]

Update. Novotel have confirmed my booking and have included breakfast, which wasn't included in the original booking with Rydges. So a good result and bouquets to Novotel who have been very accommodating.

 

[serfty]

Dont forget to bung your LeClub Accor number into the booking. ..