by The Editors on May 11, 2009
A “showdown” was scheduled for today at 1 PM in a dispute between BRCP HEF Hotel Tenant LLC, the owner of the Four Seasons Resort Aviara and Four Seasons Hotels and Resorts, the Toronto-based company that manages The Four Seasons Aviara, according to a story in the North County Times.
The struggle dates to Friday, March 27, when the hotel’s owner attempted to extricate itself from a contract with Four Seasons Hotels and Resorts, a Toronto-based company that manages Aviara and dozens of other luxury resorts around the world. . . But instead of waiting for an arbitration panel’s directions, representatives of BRCP HEF Hotel Tenant LLC, the Delaware company that owns the resort, entered the hotel around 1 a.m. the following Sunday, picked the locks in a manager’s office and posted private security guards outside, according to legal documents that Four Seasons filed in San Diego federal court Monday morning.
Last week BRCP HEF Hotel Tenant reportedly named the New Jersey company Dolce Hotels and Resorts as the new managers of the resort property. Wonder how long it will take them to get all the signs, letterhead, menus, plastic cups, and keys swapped out with the new name? Whatever that will be.
[Link: North County Times and San Diego Union Tribune]
by The Editors on October 1, 2010
A $186.5 million loan backed by Carlsbadistan’s Park Hyatt Aviara has gone into default, according to a story on the San Diego Daily Transcript.
According to the RealPoint LLC credit rating company, the loan is a month delinquent and has been transferred to a special servicer. . . . Horsham, Penn.-based Realpoint said the 329-room resort, which up until recently was known as the Four Seasons Aviara, had $382,910 in negative cash flow for the 12 months ended March 31. The hotel reportedly had posted $3.1 million in net earnings in 2009 and $11 million in 2008.
We thought the Battle of Aviara was over, but looks like the Park Hyatt is still in the trenches.
[Link: San Diego Daily Transcript]
by The Editors on June 21, 2010
After more than a year of disputing between resort owner Broadreach Capital and Four Seasons Resorts (something we called the Battle of Aviara) Carlsbadistan’s Aviara Resort officially became the Park Hyatt Aviara Resort yesterday, according to a story in the San Diego Union-Tribune.
Hyatt Hotels Corp. representatives insist that guests at the 329-room resort will notice no difference after the Aviara becomes a Park Hyatt, which is the Hyatt chain’s upscale, contemporary brand. All signage will be changed during the first two days of the changeover, they said. . . “We are thrilled to be managing one of California’s most beautiful resorts,” Chuck Floyd, Hyatt’s chief operating officer for North America, said in a news release. “Park Hyatt Aviara Resort will be a wonderful addition to our luxury Park Hyatt portfolio and Hyatt Resort properties worldwide.”
It will take a while to get things straightened out. A Google search for “Aviara Resort” still returns a list of links to the Four Season’s webpage which “regrets to inform you that the resort is no longer managed by Four Season Resorts and Hotels” but does not offer a link to the new site. It does, however, offer links to other Four Season’s properties. We’re sure the Park Hyatt Aviara wil eventually begin showing up properly.
We have more questions, but we’ll have more info after we give the new Hyatt a test run.
by The Editors on April 21, 2010
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]
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by The Editors on May 13, 2009
In the Battle of Aviara press release war over The Four Seasons Aviara, the Four Seasons management group has now upped the ante with the longest press release so far which is loaded with shots across the bow of BRCP HEF Hotel Tenant, LLC like this one:
As illogical as it may sound, the Owners have threatened to stop funding operations, including salary payments to employees, yet expect to continue to collect and hold revenues from ongoing operations. Under the management agreement, the Owners are obligated to fund all required working capital, including debt service payments. . . the Owners re-financed the asset in 2006, significantly increasing the debt service significantly and making it impossible for the Resort to service its debt level in the current economic downturn.
That seems to make sense. Follow the jump for the entire release.
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by The Editors on May 12, 2009
As much as we would like to do actual reportage on the Battle of Aviara, just posting the press releases from the two sides is becoming quite fun in and of itself.
Here’s a taste of what you can read from Aviara ownership group BRCP HEF Hotel Tenant, LLC in full after the jump:
“Our client, the owners of the resort, have terminated Four Seasons — and believe that Four Seasons is occupying the resort without authority to do so,” says William A. Brewer III, partner at Bickel & Brewer and lead counsel for the owners. “Upon being notified by Four Seasons that it would physically oppose owners’ efforts to install a new management company, our clients chose not to risk a confrontation.”
Apparently, the Four Seasons has turned back to owners for the time being. Stay tuned.
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by The Editors on June 14, 2009
The first thing we thought of when we heard about the Battle of Aviara was what would it mean for people who owned timeshares at the Four Seasons Resort and were faced now with the possibility that their timeshare was no longer being attached to a The Four Seasons hotel.
In today’s San Diego Union-Tribune writer Lori Weisberg explores the timeshare side of the disagreement between Aviara owners Broadreach Capital and management company the Four Seasons.
“People are definitely concerned, and everyone I’ve heard from is not happy about it,” said Steve Tuttle, who owns a title company in Utah and has at various times bought 25 time shares around the country, including a week at the Four Seasons Residence Club at the Aviara resort. . . “You buy into a lifestyle that now has the potential to be seriously altered. I worry the maintenance fees may go up and access to hotel facilities could be altered.”
According to the story experts don’t exactly agree on what will happen with the timeshares if the Four Seasons leaves the property. Follow the link for the rest of the story.
[Link: San Diego Union-Tribune]
by The Editors on May 12, 2009
On Saturday when the Four Seasons said it had “no intention to voluntarily relinquish its role as manager” of the Four Season Aviara they weren’t kidding.
The company that manages the hotel has reportedly erected barricades to keep the resort owners’ new management team off the property, according to a story in the San Diego Union-Tribune.
William Brewer, an attorney for Broadreach, yesterday said the company was forced to delay its move to install a new management firm, New Jersey-based Dolce Hotels and Resorts, because Four Seasons erected barricades and checkpoints at the entrances to the 329-room resort to thwart the move. . . . Both sides were in federal court yesterday. Four Seasons was seeking an order to require Broadreach to continue its employment until issues are resolved in arbitration. Broadreach was seeking an order to allow it to take possession of the resort. . . Oral arguments on the motions are scheduled May 27.
Vacations in the danger zone.
[Link: San Diego Union-Tribune]
by The Editors on May 11, 2009
This afternoon we got an email from Tony Pistillo, the director of public relations at the Four Season’s. It contained a statement that was released on May 9, 2009 regarding the battle for Avaria. Here it is:
Four Seasons announced today that it has no intention to voluntarily relinquish its role as manager of Four Seasons Resort Aviara in Carlsbad CA. Four Seasons has managed the Resort since 1997.
Very recently, a dispute arose with regard to the 2009 operating budget for the Resort and the Owner’s obligation to provide working capital necessary to fund debt service. That dispute is currently the subject of an arbitration proceeding, which Four Seasons fully respects and will abide by. Four Seasons has fulfilled all of its obligations under the relevant management agreements. Four Seasons intends to vigorously defend its rights in the arbitration process currently underway.
Four Seasons will also seek substantial damages from the Owner (which is beneficially owned Broadreach Capital Partners and asset-managed by Maritz, Wolff & Co.) and its counsel for their conduct in damaging the operation and reputation of the Resort and of Four Seasons.
Without knowing any of the back story we’ll just say it looks like this might get a little more involved before everything is settled.
A “showdown” was scheduled for today at 1 PM in a dispute between BRCP HEF Hotel Tenant LLC, the owner of the Four Seasons Resort Aviara and Four Seasons Hotels and Resorts, the Toronto-based company that manages The Four Seasons Aviara, according to a story in the North County Times.
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