Taj Hotels Resorts and Palaces has confirmed that it will take over the management contract of a 161-key luxury resort in Marrakech, originally planned as a Mandarin Oriental resort.

Mandarin Oriental Hotel Group (MOHG) pulled out of the contract it had with the property's owner, privately-owned Moroccan company JK Hotels.

The resort, which is due to open in October 2011, will now be launched as Taj Palace, Marrakech.

Live Haugen, a spokesperson for MOHG's Middle Eastern operations, told Spa Business that the pulling out of the project doesn't rule out a future MOHG property in the region.

"We have withdrawn the management contract for our Marrakech project," she said.

"But Marrakech remains a suitable location for a Mandarin Oriental resort property, and the group is exploring further opportunities in the destination."

Taj Palace Marrakech will house an extensive Jiva Grande Spa across 3,800 sq me, with 14 treatment rooms including Ayurveda, two large hammams and a fitness centre with Technogym equipment.

Raymond Bickson, managing director and CEO of Taj, said: "Taj Palace Marrakech, is our latest venture into the African continent and is in sync with our strategy to continue our vision of growth in key international destinations.

"The hotel will fit perfectly in our portfolio with its meticulously crafted and vivid blend of Moroccan, Indian and Asian themes. Marrakech is rich in culture and tradition."