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Breaking News: BD Hotels No Longer Managing Hotel Chelsea

Where: 222 West 23rd Street [map], New York, NY, United States, 10011

The Living with Legends blog at the Hotel Chelsea is reporting that the management group BD Hotels has been fired from the hotel. Here are some details:

Legends has managed to obtain a copy of the arbitration filing that will ultimately determine who will manage the Chelsea Hotel. What happened in this case is that BD filed suit against the hotel (essentially Marlene Krauss, since she is the one running the show), alleging that Marlene fired them without cause, and that she has failed to pay them the Incentive Fee that she owes them.

Marlene Krauss fired BD for, along with other things, failing to live up to their duties. Now BD is trying to recoup some of that incentive fee which is around $2 million. Yikes. No one from BD Hotels has shown up at the hotel today and the blog is reporting that the locks on the manager's office have been changed.

This is probably going to get even messier but we're sure the residents of the hotel are at least a little happy about the firing. Um...well...probably more than a little happy judging from the photo above which was posted on the residents' blog.