Originally Posted by
bocastephen
Not re-negotiating a dumb and twisted contract in 20 years....that is even more bizarre. I know Taipei well....I highly doubt that space is going to another hotel brand anytime soon, especially under such ridiculous terms, and if they tear down the hotel, what are they going to build given much of the real estate investment money from China has dried up? More overpriced condos they can't sell to anyone?
This was a great hotel....hope the landlord chokes on the building they'll be getting back.
Actually to answer your question, which was also reported by Taiwan news. The contract was signed by the CEO's father (the founder of LeeFoo). Apparently her father and the landlord were "good friends" (but I guess not that good), and the contract was signed for 20 years non-renegotiable (again, not a good friend). The contract runs from 1999 to the beginning of 2019, which the landlord refused to extend a new contract (because the current CEO wants to make the contract reasonable).
The landlord which is Cathay Insurance (not Cathay Pacific and no relations) in Taiwan, plans to have a hotel of their own. The current CEO of Cathay Insurance is really into hotel and has already invested in 3 major 5-star local brands in Taiwan (one in Taipei), and he plans to convert Westin into his newest hotel establishment. It is reported he will spend extensive investments to renovate the interior and put his own footprint in the property.