It’s been 13 months since Carlsbadistan’s Aviara Resort owner BRCP HEF Hotel Tenant LLC first tried to get out of its management contract with Four Seasons Hotels and Resorts in what we called the Battle of Aviara. BRCP claimed Four Seasons was not living up to its contractual obligations and Four Season disagreed.
Now, after lockouts, and checkpoints, and accusations from both sides it appears that arbitration has worked, according to a story on the San Diego News Network. Four Seasons is out and Hyatt Hotels is in.
Hyatt Hotels has been selected to take over management of the Aviara Resort in Carlsbad from Four Seasons Hotels, it was announced Tuesday. . . Hyatt plans to brand and manage Aviara Resort as part of its luxury Park Hyatt group on June 21, when it will become the Park Hyatt Aviara Resort, according to the company.
According to the story, the arbitration panel agreed with Four Seasons that no management agreements were broken, however they apparently decided that Four Seasons should no longer be involved with the property.
For the entire BRCP HEF Hotel Tenant LLC press release regarding the change please follow the jump.
[Link: San Diego News Network]
Arbitration Panel Issues Ruling in Dispute Between BRCP HEF Hotel Tenant LLC and Four Seasons Hotels Limited Regarding Four Seasons Resort Aviara
Read more: Arbitration Panel Issues Ruling in Dispute Between BRCP HEF Hotel Tenant LLC and Four Seasons Hotels Limited Regarding Four Seasons Resort Aviara
CARLSBAD, Calif., April 20 — On May 8, 2009, BRCP HEF Hotel Tenant LLC, the owner of the Four Seasons Resort Aviara in Carlsbad, California, issued a press release that it was replacing Four Seasons Hotels Limited as the operator of the Aviara Resort because of alleged financial mismanagement and breach of fiduciary duties.
Four Seasons disputed these claims and, pending the outcome of arbitration with BRCP has remained as the operator of the Aviara Resort.
In accordance with the Hotel Management Agreement that governs the parties’ relationship, the parties submitted their dispute to a duly constituted arbitration panel.
The arbitration panel found that Four Seasons did not breach the Management Agreement or its fiduciary duties to BRCP.
The Panel determined, however, that both parties contributed to the demise of the business relationship between the parties and that the Hotel Management Agreement should be terminated and a transition implemented in accordance with a transition plan between the parties.
As an express condition of the termination ordered by that majority of the panel, BRCP has paid to Four Seasons the compensation ordered by the panel majority for the termination of the Hotel Management Agreement.
The arbitral decision and award is otherwise confidential and non-public and BRCP and Four Seasons therefore will not comment further.