Setai Miami Beach Under New Management!
 

http://www.marketwatch.com/story/set...ent-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In a "Waikiki Edition"-style middle of the night takeover, GHM hotels has been ousted and has been replaced by Trevi Luxury Hotels.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/po...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."

interesting
previous article says "affiliate" so i wonder what the reality is
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 >

"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/Custo...ndoclients.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

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

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

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.

edit >

although, i was being unfair by not pointing out that lehman was single handed responsible for the development of an incredibly large number of luxury hotels/resorts including some of the best regarded in the world, because others would not finance the development of those luxury hotel/resort properties.

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-relea...145830225.html

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/20...fter_Shakedown
http://www.hotelchatter.com/story/20..._Weekend_Looms
http://www.hotelchatter.com/story/20...Can_Get_Better
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/2012/04/16/441...-brothers.html
mentions gallivanters. previously >
:D :cool: