Tag: Hotel Management Companies
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Forced Out GHM Speaks Out on Setai Shakedown
Singapore-based General Hotel Management, aka the people who were running The Setai in South Beach until they were forcibly removed from the property by the Setai's owners, Lehman Brothers, have just put out a statement with their side of the story.
Hans R. Jenni, President and Director of GHM, said:
"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 31st. 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."
Setai Shakedown / Miami Hotel Mambo / Hotel Management Companies / Hotel Industry News / Hotel News / → All Tags
Inside Saturday's Shakedown at The Setai Hotel in South Beach
UPDATE: GHM speaks out on the shakedown!
It was a wild Saturday in Miami last weekend which really isn't nothing new for the party town but things got crazy--like police involved crazy at The Setai for a different reason--a hostile middle-of-the-night takeover.
USA Today reports the owners of The Setai, Setai Owners LLC, kicked out their current management company, General Hotel Management and GHM (South Beach) LLC, and replaced them with Dallas-based Trevi Luxury Hospitality Group.
The ousting happened because the Setai owners (which is actually a unit of Lehman Brothers) claims the hotel should be more profitable. Here's a little bit on what the hotel was spending their money on (this comes from Lehman's request for arbitration to essentially end GHM's management contract):
