Kempinski withdraws from North Korea's Hotel of Doom
European chain Kempinski says it could not 'at this time' run the Ryugyong to its standards, apparently referring to economic sanctions
A luxury European hotel chain has pulled out of plans to manage one of the biggest hotels in the world in Pyongyang as the crisis over North Korea's threats of war deepens.
Kempinski Hotels and Resorts planned to manage the 105-storey pyramid-shaped Ryugyong Hotel when it opened this summer in what would have been a coup for the hermit nation's new leader Kim Jong-un.
The group's Swiss-born chief executive Reto Wittwer predicted in November that the hotel would "monopolise all the business in the city" and would be "a money-printing machine if North Korea opens up".
As the political crisis over North Korea intensifies, however, Kempinski - which describes itself as Europe's oldest luxury hotel group and operates five-star hotels and resorts in Europe, the Middle East, Africa, India and China - has withdrawn from the project.
In a statement apparently seeking to distance itself from the project, a spokeswoman indicated that increased economic sanctions against Kim's regime earlier this year were a key factor in the decision.
"Kempinski Hotels confirms that KEY International, its joint venture partner in China with Beijing Tourism Group (BTG), had initial discussions to operate a hotel in Pyongyang, North Korea," the statement said.
"However no agreement has been signed since market entry is not currently possible."
