Lehman Brothers sends in the heavies to The Setai resort
Singapore-based management company, General Hotel Management (GHM), has reacted angrily to the circumstances surrounding the loss of its management contact at The Setai South Beach in Miami.
GHM said that at 2:30 am last Saturday owner representatives of The Setai South Beach arrived at the hotel and informed GHM they were taking over the property.
According to Hans R. Jenni, president and director of GHM: "Representatives from Lehman Brothers arrived at the hotel with armed guards and off-duty sheriff officers in uniform in the early morning hours on March 31.
"They informed us that they were taking over the property and that General Hotel Management (GHM) was no longer welcome on the property.
"These actions took us by surprise, as we had no prior indication they were intending to do this, nor were we under the impression that they were unhappy with our performance.
"We had just achieved the second best financial performance year since the inception of the hotel, not an easy accomplishment in the current economic environment."
Jenni added: "At this time we are not in a position to comment on the specifics of their allegations. We are in conversations with our lawyers and will take the necessary steps to ensure that Lehman Brothers complies with the requirements of the management contract in place."
The allegations shared by Lehman Brothers’ advisors are "defamatory, damaging and without basis", Jenni said.
"Lehman Brothers have ignored a valid contract, stormed the hotel and have taken the law into their own hands. Their lawless behavior is sending the message that no contract is enforceable."
Since the opening of The Setai South Beach in August 2005, GHM said the hotel has been recognised as one of the top hotels in the world.
Founder of Aman Resorts, Adrian Zecha, non-executive chairman and director of GHM, said: "GHM is an industry leader with tremendous brand recognition in our industry."
In addition to top industry accolades, Zecha said that under GHM management the Setai South Beach "has provided a strong resident experience that has been key to maintaining and increasing the value of the individual properties, creating record breaking prices for the property sales".
Ian Jarrett
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