Sodexo Prestige has pulled out of its £30m food and beverage contract with London hotel Montcalm just two years into a 10-year deal.
The caterer announced the partnership with the hotel at the end of 2011 when it was brought in to provide all dining, bar, restaurant and in-room services to the 150-bedroom property, located near Marble Arch.
As part of the contract, a new 90-seat restaurant and bar with private dining room called the Grill was launched at the hotel, which was overseen by head chef Andrew Ives.
David Johnson, Sodexo Prestige leisure and sport managing director, said at the time that it was the company's first partnership with a five-star hotel.
"It is a great opportunity for us to showcase our abilities in the international hotel market and demonstrate the five-star service we can provide," he said. "Adding the Montcalm hotel to our portfolio will strengthen our business significantly in this market sector."
But Sodexo Prestige withdrew from its contract last month because the hotel sector no longer ‘fits' with the company's plans.
In a statement Sodexo Prestige said: "Whilst we had done an exemplary job and remain on extremely good terms with the client, we want to focus on our sports and leisure business at this time and so the international hotel market no longer fits with our current strategy in the UK and Ireland.
"We are proud to have supported the hotel in achieving its prestigious AA five star rating. Both companies have enjoyed the working association."
Tom and Ed Martin's London pubco the ETM Group also signed a 10-year contract with Montcalm London Hotels in 2011, assuming responsibility for all F&B at the 230-bedroom Montcalm London City luxury hotel in Chiswell Street.
Commenting on whether ETM might be interested in picking up the reins at the Marble Arch property, Tom Martin said: "We obviously have a very close relationship with the hotel so they would naturally speak to us about other hotels that they're operating and we have had discussions.
"But it's far too early in the day to be saying anything more than that."
Montcalm was unavailable to comment.
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