Luxury Hotels - Setai Miami Beach Under New Management!

http://www.marketwatch.com/story/setai-resort-residences-under-new-management-2012-03-31

:eek:

In a "Waikiki Edition"-style middle of the night takeover, GHM hotels has been ousted and has been replaced by Trevi Luxury Hotels. Apparently the name and employees will stay...

"affiliated with Lehman Brothers" WOW had no idea setai owners were another victim of lehman fallout - that explains no management company, no setai club, etc - only licensing (attempt with san diego, success with new york)

much much worse than loss of FS provence

the short list of quality US properties has just gotten shorter

this is simply cutting costs more like aviara for example than waikiki edition (misrepresentation esp Schrager) but in this case (lehman) could be bank driven

but one thing that i dont understand is the building is sold out right.. i guess i dont know if there have been defaults/foreclosures, but for example condo owners at st regis FLL wanted change to RC. seems odd owners at setai (2 pool penthouses are insane $ figures) would want to downgrade management. so maybe there was some kind of issue, like a couple condo owners got upset about something. of course power of HOA vs owner also matters whenever its not a COOP. might see another/additional mgmt co changes.

will be interesting to hear what happens with long time staff, and how bad service gets how fast

also means some of the other ghm losses may simply be financially driven, but still not good for brand
wonder how ghm ownership is structured in relation to DLF owning aman etc, and do they only manage

thai styled penthouse A just changed hands in december for record setting $21.5mm
good for seller, not so good for buyer (this isnt the one in hotel inventory, seems unlikely to change)

Not really surprised .
Extracted from a usatoday report

" This case is somewhat different, Brewer says. This takeover concerns allegations of inadequate management, according to filings. The owner claims the hotel should be more profitable.

Along with the takeover, Lehman Brothers Holdings also began an international arbitration against GHM, amid charges that the management company violated terms of the March 2000-dated management agreement.

Lehman Brothers filed a "request for arbitration" notice at the International Court of Arbitration of the International Chamber of Commerce in Paris. The filing provides a glimpse as to the hotel's budgets over the past two years and why the owners take issue with it.


http://travel.usatoday.com/hotels/post/2012/03/management-dispute-at-setai-luxury-south-beach-hotel/661111/1


"In 2010-2011 alone, the Hotel's Rooms Department incurred excessive expenses of over $2 million, its Administrative and General Department incurred excessive expenses of approximately $2.3 million, and its Marketing Department incurred excessive expense of approximately $3.3 million. Had GHM not negligently expended those amounts – and, instead, operated more efficiently – Owner would have realized an additional $7.6 million in incremental profit."

will also keep its affiliation with the luxury hotel marketing organization, Leading Hotels of the World. interesting
Setai Owners LLC, is a unit of Lehman Brothers.
previous article says "affiliate" so i wonder what the reality is
holds ownership interests in...most of its condominium units.
no idea what that is supposed to mean

that they had to dispute means ghm must have decent contracts at least in some places

lets see how much they make as a non-luxury property, could be interesting, and should be VERY interesting considering HOA, especially those who want the hotel rental income

i should clarify re waikiki edition >
failed Edition brand and concept

Edition" brand is losing the executives who were supposed to make it a thriving success
FACTUAL BACKGROUND

H. Ian Schrager Abandons "Edition" To Start His Own Competing Hotel Brands

"holds ownership interests in...most of its condominium units."

Wouldn't that indicate that many condos are unsold?

Re Lehman's involvement, if memory serves correct, they were the mortgage lender to the property...and then foreclosed.

They've held on to many of their real estate assets through the downturn....this one seems not to be an exception...and are only beginning to sell them now.

setai opened in 2004/2005

looking at assessor >
162 units at 101 20 ST - im seeing sold out with 3 HOA foreclosed
(2 out of 3 reference http://www.hymanmarslaw.com/CM/Custom/TOCcondoclients.asp)
gilbert arenas has sold, one LLC name references blonde jokes, another seems to reference james bond

88 units at 2001 Collins AVE including setai club on 7th floor
9 sold - 211 302 308 311 401 402 404 411 511
there is no 709 or 710
interesting figures - but how many were marketed (plus no combining?) and they are tiny inexpensive units
RESIDENTIAL MULTI-FAMILY, HIGH DENSITY / CONDOMINIUM - RESIDENTIAL - no 7XX references club

Wow Kage! First time I have seen you write in complete sentences! ;) ... (friendly kidding...)

note how many posts i have. even if minority its still thousands. although looking at my trip reports, even they vary.

"affiliated with Lehman Brothers" WOW had no idea setai owners were another victim of lehman fallout - that explains no management company, no setai club, etc - only licensing (attempt with san diego, success with new york)

much much worse than loss of FS provence

the short list of quality US properties has just gotten shorter

this is simply cutting costs more like aviara for example than waikiki edition (misrepresentation esp Schrager) but in this case (lehman) could be bank driven

but one thing that i dont understand is the building is sold out right.. i guess i dont know if there have been defaults/foreclosures, but for example condo owners at st regis FLL wanted change to RC. seems odd owners at setai (2 pool penthouses are insane $ figures) would want to downgrade management. so maybe there was some kind of issue, like a couple condo owners got upset about something. of course power of HOA vs owner also matters whenever its not a COOP. might see another/additional mgmt co changes.

will be interesting to hear what happens with long time staff, and how bad service gets how fast

also means some of the other ghm losses may simply be financially driven, but still not good for brand
wonder how ghm ownership is structured in relation to DLF owning aman etc, and do they only manage

thai styled penthouse A just changed hands in december for record setting $21.5mm
good for seller, not so good for buyer (this isnt the one in hotel inventory, seems unlikely to change)

Wow Kage! First time I have seen you write in complete sentences! ;) ... (friendly kidding...)

"affiliated with Lehman Brothers" WOW had no idea setai owners were another victim of lehman fallout - that explains no management company, no setai club, etc - only licensing (attempt with san diego, success with new york)

much much worse than loss of FS provence

the short list of quality US properties has just gotten shorter

this is simply cutting costs more like aviara for example than waikiki edition (misrepresentation esp Schrager) but in this case (lehman) could be bank driven

but one thing that i dont understand is the building is sold out right.. i guess i dont know if there have been defaults/foreclosures, but for example condo owners at st regis FLL wanted change to RC. seems odd owners at setai (2 pool penthouses are insane $ figures) would want to downgrade management. so maybe there was some kind of issue, like a couple condo owners got upset about something. of course power of HOA vs owner also matters whenever its not a COOP. might see another/additional mgmt co changes.

will be interesting to hear what happens with long time staff, and how bad service gets how fast

also means some of the other ghm losses may simply be financially driven, but still not good for brand
wonder how ghm ownership is structured in relation to DLF owning aman etc, and do they only manage

thai styled penthouse A just changed hands in december for record setting $21.5mm
good for seller, not so good for buyer (this isnt the one in hotel inventory, seems unlikely to change)Where do you see any indication that this property is a "victim of the Lehman fallout" and that the Lehman affiliation "explains no management company, no setai club, etc"?

Why do you assume that "the short list of quality US properties has just gotten shorter" and that "this is simply cutting costs"?

Where is there any indication that the building is being sold outright?

Are you reading the same press release that I am?

Where do you see any indication that this property is a "victim of the Lehman fallout" and that the Lehman affiliation "explains no management company, no setai club, etc"?

Why do you assume that "the short list of quality US properties has just gotten shorter" and that "this is simply cutting costs"?

Where is there any indication that the building is being sold outright?

Are you reading the same press release that I am?

seems youve read something into my post? or i was making too many references that were not explained.

1. lehman bankruptcy stopped a ton of development, if not causing other shutdowns (by itself, let alone other BKs)

2. one of two setai cofounders is gone, and setai has >
x miami (owned by lehman? NYBanker suggests lehman foreclosed)
- club mgmt and license - 40 broad
x license - 400 fifth avenue
(if lehman owns miami, did they get ownership of brand as well?)

3. youre suggesting mgmt co they are currently using (which they say will spend less) is as good as ghm? offhand i dont recall negative reports for setai here, and ghm is regarded as a slightly lesser sibling of aman.

The takeover of The Setai was handled like an armed raid at 2am in the morning. Why was this necessary? Here is what GHM says about it:-

http://www.prnewswire.com/news-releases/statement-from-general-hotel-management-ghm--on-the-setai-south-beach-owner-takeover-145830225.html

http://www.prnewswire.com/news-releases/statement-from-general-hotel-management-ghm--on-the-setai-south-beach-owner-takeover-145830225.html

just achieved the second best financial performance year since the inception of the hotel

if so, court will be especially interesting

no mention of gallivanters awards, really? :D
Gallivanter's Guide 2008 - Editor's Choice Awards - Cuisine
seems like Shaun Hergatt, who left in 2009

http://www.hotelchatter.com/story/2012/4/3/145520/9756/hotels/A_Setai_Condo_Owner_Says_Staff_Morale_is_Low_in_Da ys_After_Shakedown
Staff moral is the lowest I have ever experienced, service levels are at there lowest, the Grill is closed during the busiest time of the year, there is no security at the beach entrance to the pool allowing anyone to walk in and intrude.

...my fellow owners and I will be looking for compensation to offset the loss in value that we as owners are forced to realize should that be the case.

http://www.hotelchatter.com/story/2012/4/4/101219/1011/hotels/The_Setai_Not_Feeling_So_Hot_as_Sold-Out_Easter_Weekend_Looms
over 40 employees have already peaced out of the hotel, even though they are being offered $500 to stay...no food service down on the beach...it's Easter Weekend...and the property is sold-out

http://www.hotelchatter.com/story/2012/4/5/133451/4551/hotels/Things_Were_Not_Always_Good_at_The_Setai_But_Here% 27s_Hoping_It_Can_Get_Better
assured residents that the problem was "temporary" and that all fruit and frozen drinks at the Pool and Beach Bar would be complimentary...he will be hosting a homeowners reception...every Saturday in April...He even offered up his cellphone [number]

this domenico vacca club (members and hotel guests) - did they get rid of setai club (private to fractional owners) ?

I'm back from the Setai (arrived shortly after the management-shakeup), travel report will follow soon.

thanks JohnRain ^

http://www.sacbee.com/2012/04/16/4416945/ghm-fires-back-at-lehman-brothers.html
Industry leading RevPAR index average of 200, surpassing all hotels in the region

We will continue to share the exact details of our tenure at the Setai to ensure the truth is known

"2011 Gallivanter's Guide Award for Excellence," second place
mentions gallivanters. previously >

no mention of gallivanters awards, really? :D
Gallivanter's Guide 2008 - Editor's Choice Awards - Cuisine
seems like Shaun Hergatt, who left in 2009
:D :cool:

one of two setai cofounders is gone, and setai has >
x miami (owned by lehman? NYBanker suggests lehman foreclosed)
- club mgmt and license - 40 broad
- license - 400 fifth avenue
(if lehman owns miami, did they get ownership of brand as well?)

did ghm know this was coming? i find it hard to believe ghm would have started a brand battle if they had no rights... regardless, this timing (mar 2012) is clearly not coincidental.

1 - ghm announces "setai air" (and "setai yacht")
http://www.google.com/search?client=safari&rls=en&q=%22setai+air%22'&ie=UTF-8&oe=UTF-8

2 - ghm brands mumbai setai
http://www.omsaiestate.com/ghm-to-debut-in-india-by-december-2013-in-mumbai/
ghm announced mumbai last year
http://www.expresshospitality.com/20110615/market01.shtml

i see at least one trademark page saying lehman owns at least part of setai brand

seems hard to believe ted wright would still be heading up setai mgmt co
(and he only became that after being hired as san diego GM which fell through)
(so not sure whether setai was planning to manage, or they poached him)

John Conroy left, but in addition to Jonathan Breene there is his brother Michael

they did stop selling at 2001 Collins AVE >
http://www.condhotel.com/news-condo-hotel-miami/2006-Apr-MiamiHerald-Setai-condo-hotel.pdf
identifies lehman as "main lender"
that article and AirJunkie do discuss slowdown of club way before financial crisis

but AirJunkie's post on shift to licensing is post lehman BK >
http://www.flyertalk.com/forum/luxury-hotels/788263-new-amanresorts-ghm-development-thread-up-beginning-2010-a-post11360304.html#post11360304

http://ttgasia.com/article.php?article_id=3400

Adrian Zecha, who is non-executive chairman and director of GHM, said “GHM created the Setai concept and experience, leading the hotel to achieve numerous industry recognitions.”

“Under GHM management, The Setai South Beach has provided a strong resident experience that has been key to maintaining and increasing the value of the individual properties, creating record breaking prices for the property sales,” he added.

We arrived at the Setai on April 5, ie just 5 days after the management shake up. When our car stopped in front of the entrance, I was quite impressed to see three armed state troopers guarding the door and a police car parked right next to the hotel. The "Setai" panel had been momentarily removed from the wall while someone was doing a paint job (I can only guess here, but he was probably painting over the GHM logo.)

The Room:
Our room wasn't ready yet so we decided to go to the Beach Bar for a late lunch. When our room was finally available, I was quite disappointed to learn that the hotel was completely sold out and that I therefore would not receive an upgrade (I booked through Amex FHR). The City View Suite we got was exactly as I expected it to be, having previously asked a few questions about it here on FT.
While quite large in terms of square footage (about 590 sq ft), it doesn't feel big because there's too much furniture in it (too many sofas, a bathtub in the middle of the room). While the room is nicely decorated and has an upscale "feel", I wasn't crazy about it because it is definitely too dark. There's no real bathroom, but rather two wash basins on either side of the entry door. Even with all lights on, you don't really see yourself in the mirror in full detail. The shower stall is completely black and quite small. Another very annoying thing is that the blackouts at the windows cannot be operated by a remote, which means that you have to crawl over the sofa to raise them in the morning. There is no iPod docking station and the TV is definitely too small. To sum it up, the room is reasonably nice but neither very practical nor does it give you that "suite" feeling (especially because of the various issues with the (lacking) bathroom).

Overall Rating: Average

The Food:
The breakfast buffet offers a very large choice, both on the sweet and on the sour side. Weather permitting, you can have your breakfast in the courtyard. I particularly enjoyed to sit on the sofas by the pond. For lunch, you essentially have three options: at the Beach Bar (largest selection), at the Pool and at the Beach (much smaller selection). I tried all three and while the food is always good, it is not spectacular (especially the snacks at the Beach are really nothing special at all). I never had dinner at the Restaurant or the Grill, so I can't comment on this subject.

Overall Rating: Good. (Great for Breakfast)

The Pool & The Beach:
The pool area is very nice and comprises three different pools, each with a different temperature. The lounge chairs are wide and very comfortable. There's always some lounge music playing in the background, which is OK if you're on a lounge chair, but definitely annoying if you choose a bed because those are situated close to the speakers and the music is therefore too loud (at least for my taste).
The beach is nice as well, with the same, wide lounge chairs. You get complimentary bottled water and small spritzers. Sand and water quality is good and the beach is reasonably clean.

Overall Rating: Good to Great

The Gym & Spa:
The gym is very small, much too small in fact for a hotel of that size.
I never used the Spa so I can't comment on it.

Overall Rating (Gym): Below Average

The Service:
Staff at the restaurants and at the pool is mostly Asian and always very friendly. Occasional shortcomings are made up by a very friendly attitude. I've read on FT that some guests found the staff to be snotty or arrogant, which is something I definitely can't confirm.
The concierge is very friendly and efficient, both in terms of advice and in terms of execution.
An assistant manager from Switzerland who will recognize himself should he ever read this was the person I was most in touch with and he really contributed to making my stay enjoyable.

On a sidenote, I had a very negative experience with some service and management aspects of the hotel when my fiancée reacted very badly to a dish she ate at the pool and had to be treated by paramedics who came to our room. I won't dwell on this subject because it is not relevant to most if not all readers of this report, it's just that it severly tainted my experience of the hotel, to the point where if asked right now if I'd consider to go back the answer would probably be no..

Overall Rating: Good (again, the food-related incident I was confronted with is not taken into account here)

The Guests:
As mentioned earlier the hotel was fully booked when I was there (it was Easter / Passover).
I was quite surprised by the fact that more than half of the guests were European and there were a whole lot of small children. Of all the SoBe hotels I considered the Setai was clearly the one which emerged as the least family-oriented, which is why I thought this point worth mentioning.

Overall Impression:
It's a nice property, but in my view you have to stay in the Tower (and thus be ready to spend over 1000$ a night) to really enjoy it. While the finish of the Art Deco Building rooms is nice, I think that they're definitely too dark. I also don't get the point of a bathtub in the middle of a room that has a wooden floor and a TV that's right above the tub so you can't even watch it while you're taking a bath. The missing bathroom (there's only a dark shower stall) is also less than optimal.

Hotel pool is on the cover of this month's Virtuoso Life magazine and there is a short write up in article re City Getaways. "Adrian Zecha . . . made the 75 rooms and 50 suites the height of minimalist chic . . . ."

thanks JohnRain ^

re virtuoso life >

for may/june >
3/1/2012 ad space close
3/15/2012 ad files due
(3/31/2012 mgmt change)
4/23/2012 mail date

cover http://www.virtuosolife.com/LocalResources/wwwvirtuosolifecom/template/images/307.jpg
article http://www.virtuosolife.com/hidden/article/?ArticleID=2cb527a8-10a4-4c77-abd5-87e5ebe33b1b
ROMANTICS
Check in: The Setai does romance better than practically any place in Miami. Consider its signature couples spa treatment – a 60-minute Ancient Balinese Massage for two that culminates with Champagne and canapés and a soak in an oversize terrazzo bath filled with rose petals ($612). Outside, three infinity-edge pools, heated to 75, 85, and 95 degrees, have hedged-in areas for optimum privacy. Adrian Zecha, of Amanresorts fame, made the 75 rooms and 50 suites the height of minimalist chic with dark woods and black granite. Doubles from $575, including breakfast daily and a $100 spa credit.

Table for two: A pillowy banquette is just the right amount of cozy to enjoy hotel chef David Werly’s award-winning Asian cuisine at The Restaurant at Setai.

Ultimate indulgence: The Setai offers a private Champagne tasting with caviar for two with the head sommelier in the wine cellar, followed by dinner ($4,990). Typically uncorked: Krug Brut, Clos du Mesnil 1998; Krug Rosé; and Krug Brut, Clos d’Ambonnay 1996.
no mention of service/ghm

Just want to give a summary of my absolutely stellar stay at The Setai Miami early November.

Well, as most of you know I am a great fan of Setai's former sister property The Datai in Langkawi, Malaysia (thanks again, Adrian Zecha ^) therefore I easily got in love with the Setai's similar modern Asian style and the tranquil courtyard with clear lines and its darker style. I love the location at the beachfront and its close proximity to Lincoln Rd. Still, the area around the property feels very relaxed and the Art Deco Building facing Collins Ave. fits nicely into SoBe architecture. Good public parking and bike rental next door.

Room: Received a Courtyard Studio at the Art Deco Building on the 4th floor as booked but with some nice sea view. Fortunately the bathtub was located in the bathroom and not in the living room. Very comfortable Dux bed with nice linens. Rooms are on the darker side which I liked though. Asprey bathroom amenities. Room was very quiet due to the courtyard location and no noise whatsoever from the hallway as the room foyer has a sliding door to separate it from the living/bedroom area. Housekeeping was excellent. We hardly noticed them, cleaning was very good. Received a complimentary bottle of Tattinger champagne along with macarons during the middle of our stay for no obvious reason which was a nice treat (thanks, zigzag for your help ;) ^).

Food: Breakfast buffet is simply stunning. A great choice of cold and hot dishes and everything of very high quality. Service was extremely friendly, professional but genuine. Majority of service staff were US people and they easily matched service of their counterparts in the best Asian properties !^ Just perfect !! Having breakfast in the courtyard is bliss and a great and happy way to start a day.

Did use room service once. Food was very good, service friendly, delivery right on time as promised on the phone.

Beach: Clean, wide and very well serviced with friendly attendants, nice beach chairs, spritzer, water bottle, cold towels. Very relaxing. Beach food was very good as well. Pleasant service.

Pools: Didn't use them but they looked great. One pool was maintained and closed during our stay. Was always greeted by enthusiastic pool staff on my way to the beach.

Service: Stunning. Never encountered a single arrogant or bad-minded staff member. Everyone from bellman, restaurant staff, housekeeping, beach and pool service to concierge was genuinely friendly, very professional and caring. I always felt very comfortable and welcomed. I.e. restaurant bookings at other locations through concierge were reconfirmed in writing and the paper message was delivered to my room in no time (and quietly slipped under the door). As I heard mixed reports on staff attitude from different sources beforehand my expectations weren't the highest ones but their performance easily contradicted any bad reviews. Although reluctant to make such kind of comparison but they reminded me much more of Asian Aman service than of anything else. It was the ice on a very very tasty cake. Well done !

Verdict: The Setai surpassed all our expectations easily. We felt relaxed and welcomed, they treated us very good all the time. Every staff member, really everybody I encountered was extremely friendly. No attitude, no faults. Not one. Wow is all I can say. I stayed there for 5 nights and could have stayed much much longer. I missed it already when I arrived at my next stop, the Banyan Tree Mayakoba. Will be back !

we had dinner there recently and thought it was very good!
I'm not surprised at your treatment,as in the restaurant they were certainly very attentive.