Aviara To Become Park Hyatt Aviara Resort

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]
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.

{ 7 comments… read them below or add one }

Eric V April 21, 2010 at 7:36 pm

What a shame! Not only are they loseing one of the best hotel brands in San Diego county, they are basically saying that it is fine to let this property go downhill. Its too bad that it has come to this but I am most certain that Four Seasons will pervail and find a new and better home here in San Diego.

Cliff S May 3, 2010 at 5:00 pm

This is a great thing! Park Hyatt’s are awesome. If it’s anything like Istanbul or Paris, the people of Carlsbad will say “Four Seasons who?” Four Season’s is a nice brand, but generally for people who purchase labels, IMHO.

Melissa May 7, 2010 at 2:05 pm

We’re own a timeshare unit in the Four Seasons Aviara Residence Club (on the resort property along with the hotel). Personally, I’m extremely disappointed in the outcome. Aside from the bizarre message the ruling sends about the reliability (or lack of) of contracts (the FS has a 30 year management contract with the owners), the Four Seasons brand is the #1 reason many people chose that hotel or purchase the timeshare units – you can’t beat the Four Seasons for quality and its unsurpassed service. The resort owner, Broadreach Capital, claimed that Four Seasons failed to manage the property in a cost efficient manner b/c they refused to lower their high quality. What a shame!

David L May 9, 2010 at 8:08 pm

This just sucks. The Four Seasons is great. Hyatt is not so great. Period

Rudy May 18, 2010 at 5:21 pm

I’m skeptical of Park Hyatt. They lost 4 out of the 7 properties they managed in the US (San Francisco, Los Angeles, Philadelphia, and New York).
Four Seraons lost the Newport beach property and now will have no presence in Southern California south of Beverly Hills. They need a property. Perhaps they will manage the Montage (maybe too large) or the Lodge at Torry Pines (maybe too small). The Del Mar Grand is also a possibility, but it’s not near enough to the coast.

James May 22, 2010 at 1:34 pm

Four Seasons is the reason this resort has become know worldwide. Remember, this development was setting quietly undeveloped for a few years after the golf club was completetd in 1991. Four Seasons created a unique atmosphere that created huge surrounding development and infrastructure. This is a travesty that the arbitration allowed the change. It is a testimony to developments where the owner is seperate than the management company. Good luck for Park Hyatt.

Does anyone know if the arbitration agreement addressed the Residence Club and it’s management contract with Four Seasons?

Melissa Hargrove June 22, 2010 at 10:34 am

It will be interesting to see what will happen now that the Hyatt controls the property and the Four Seasons the Villas. We have a group coming into SD North County the end of this year and decided it would be in our best interest to avoid the Hyatt and go to the premier resort in the area, La Costa Resort and Spa. Very stable since KSL Resorts owns and manages La Costa. They continue to invest in the property including their amazing Villas. Most people I talk with do not believe The Park Hyatt will last long and management will change again in 5 to 10 years. My advice, stay and play at La Costa Resort instead.

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