Hard Rock pulled out of Palm Springs hotel because it wasn’t getting paid: lawsuit

Thursday, just four days after Hard Rock announced they were taking their name off of the Hard Rock Hotel Palm Springs, they literally took their name off of the building and, according to a lawsuit, it’s all because the hotel wasn’t paying its management fees. 

The hotel has changed its name back to Hotel Zoso, which it was called before changing to Hard Rock five years ago.

And while the mayor is on the record saying foodies drove the Hard Rock from the property, the Desert Sun reports what appears to be the reason why the Hard Rock name is gone from the hotel:

In the lawsuit, New York real estate investment trust RCC Real Estate, Inc. sues Kittridge Hotels for breach of contract and other causes, claiming the Palm Springs hotel owner owes it $31 million as a result of outstanding loans.

The lawsuit also alleges Kittridge Hotels wasn’t paying Hard Rock either – and says that’s why the brand is leaving town.

“RCC Real Estate is informed and believes that Kittridge Hotels has defaulted on its obligation to pay a third party, Hard Rock Licensing, to manage the hotel,” the lawsuit says. “As a result, Hard Rock has indicated that it will terminate its hotel management agreement and the hotel will be shutdown.”

With a new name, a rather large lawsuit, and a quite a few new hotels open or soon to open in the area, things sure don’t look too great for the future of the property.