Rosewood hotel group had enough of Baha Mar’s “failure to perform”

Efforts to reboot the stalled $3.5b Baha Mar casino resort in the Bahamas took another hit last week after a major hotel chain said it wanted out of the project.

This past Thursday, Rosewood Hotels and Resorts International filed a motion in the Delaware court handling the bankruptcy of the project’s developer, Baha Mar Ltd. The developer filed for Chapter 11 protection in June after falling out with its primary contractor China Construction America (CCA) and its primary lender, Export-Import Bank of China (EXIM).

Rosewood, which is owned by Hong Kong-based New World Hospitality, wants relief from the automatic stay imposed by the Delaware bankruptcy court so that it can terminate the license agreement it signed with Baha Mar Ltd. in 2011.

Rosewood claims that its brand is being “diminished and tarnished each day as a result of its association with Baha Mar.” More to the point, Rosewood says it continues to incur “costs and expenses for which it is not being compensated” due to the developer’s “failure to perform and other incurable defaults,”