The Brunei Investment Agency owns the Dorchester Collection of 10 luxury hotels: the Beverly Hills Hotel; the Hotel Bel-Air in Los Angeles; The Dorchester and 45 Park Lane in London; Coworth Park in Ascot, England; Le Meurice and Hotel Plaza Athenee in Paris; Hotel Eden in Rome; Le Richemond in Geneva; and Hotel Principe di Savoia in Milan.
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The City Council of Beverly Hills on Tuesday voted to urge the hotel to untangle itself from its connection to Sharia law.
"These laws are shocking, inhumane and must be met with a strong statement of support for human rights of the people of Brunei," said Beverly Hills Mayor Lili Bosse. "It is extremely important that we separate the hotel from the ownership. This hotel is 102 years old. Beverly Hills is 100 years old this year. The city and the hotel have grown up together and always had a strong and supportive relationship. This is why I'm not calling for a city sanctioned boycott of the hotel. I feel that each individual and group should make their own decision.
"Personally and sadly, I will not be attending any events at the hotel until this is resolved," Bosse continued. "Ideally the Brunei government will repeal these horrific laws. However if this doesn't happen we want the hotel under different ownership so that it's long and rich history in Beverly Hills will not be tarnished by the Brunei government's actions."
The hotel as she noted, is 102 years old, slightly older than the city itself, which is celebrating its centennial this year.
The UNITE HERE Local 11 hospitality workers union had stronger words for the ownership.
"The Sultan of Brunei is anti-worker, anti-gay and anti-woman," Tom Walsh, president of union said in a statement Tuesday. "We want him out of Beverly Hills and out of the United States. These historic hotels deserve ownership that will respect human rights and the rights of their own workers."
The union raised another issue with the hotel ownership: "In 2009, Dorchester closed the Hotel Bel-Air for renovations. It's customary ... for hotel owners to bring back the housekeepers, cooks and gardeners when the property reopens. Instead, the owners of the Hotel Bel-Air fired all the workers and refused to rehire the majority of longtime workers. Workers lost houses, cars and filed bankruptcy as they struggled to find good jobs."
A spokesperson for the hotel did not reply to CNBC's request for comment on the union's statements.
Earlier in the week, Dorchester CEO Cowdray said the boycott was misdirected. "Today's global economy needs to be placed in a broader perspective," he said. "Most of us are not aware of the investors behind the brands that have become an integral part of our everyday life, from the gas we put in our cars, to the clothes we wear, to the way we use social media and to the hotels we frequent. American companies across the board are funded by foreign investment, including sovereign wealth funds."
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The criticism has been mounting for several weeks.
In April, the U.N. Office for the High Commissioner for Human Rights condemned Brunei's proposed revision of its penal code to apply the death penalty for crimes including rape, adultery, sodomy, extramarital sexual relations for Muslims, insult or defamation of the Prophet Muhammad, blasphemy, robbery and murder.
"The criminalization and application of the death penalty for consensual relations between adults in private also violates a whole host of rights, including the rights to privacy, to equality before the law, the right to health and freedom from arbitrary arrest and detention. The provisions of the revised penal code may encourage further violence and discrimination against women and also against people on the basis of sexual orientation," U.N. spokesman Rupert Colville said in April.
In England, the CRUISE.co.uk cruise travel agency said it would no longer book its clients at Dorchester Collection hotels. "Any guests asking to book one of these hotels will be politely told why we are unable to fulfill their request and offered a suitable alternative," the company said.
Several organizations contacted by CNBC said they planned to cancel events at the Dorchester hotels.