HotelChatter

Consistent with most recent projects in Miami Beach which have a condominium component, Gansevoort South Hotel, Spa and Residences’ ownership has been attempting to negotiate an amicable resolution with its lenders. Sandy Lane Developer, LLC, the Owner, is continuing such efforts with its lender Credit Suisse and its affiliates and is currently negotiating in good faith to buy the outstanding debt, thereby retaining ownership.

Just named the “of-the-moment spot” in Miami by The New York Times on December 6, 2009, Gansevoort South has been the recipient of rave reviews since opening and, as a hotel, is financially profitable and capable of covering its respective debt. However, the 259 unit condominium component of the cross collateralized loan, due to an overall market collapse of condominium sales, has created a situation whereby the debt as currently structured is too great for the hotel alone to support it.

For the foreseeable future, Gansevoort Hotel Group will retain management of the hotel; all staff will be retained and services will continue uninterrupted. All parties are looking forward to moving ahead and continuing to strengthen Gansevoort South’s position as a leader in the Miami Beach hotel market.

According to Michael Achenbaum, President of Gansevoort Hotel Group, “Operations at Gansevoort South hotel remain status quo; we will continue to create memorable experiences for guests and provide the highest level of service. STK restaurant will open at the hotel in the coming weeks followed by an impressive New Year’s Eve celebration on the rooftop.”

So, if you're interested in celebrating New Year's Eve at Gansevoort South, room rates are currently going for a whopping $720 a night for a deluxe king from December 30 to January 1. Wow, you'd never know the trouble behind the scenes with those room rates.