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The Setai Shakedown Shakes Out in Favor of GHM
More than two years later, the drama at The Setai in Miami Beach has ended. And in favor of the hotel operator, GHM, who was kicked out, literally, in the middle of the night, by the hotel's owners, Lehman Brothers.
Last week, the ICC International Court of Arbitration ruled "that all previous allegations of mismanagement were baseless and have awarded damages to GHM for improper termination of GHM’s hotel management agreement." It seemed that the hotel's impressive RevPAR rate of 76 percent was a key factor in the decision against Lehman. Lehman Brothers now have 30 days to make the compensation to GHM. The Miami Herald reports the damages exceed $10 million. There are also more tort claims against Lehman that are still pending in state and federal court.
However, GHM will not return to the property as manager. Trevi Luxury Hospitality Group., which has managed the hotel since the shakedown, still remains in place. Room rates for this weekend for a studio suite (the starting room category) start at $530 a night but there's a AAA discounted rate and a Florida resident rate available for $488.
[Photo: The Setai]