Hyatt selected to manage (Four Seasons) Aviara Resort

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Hyatt Selected to Manage Aviara Resort | EON: Enhanced Online News

DH just called to tell me he read this in the Wall Street Journal - not sure how it will affect the TS portion.

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This has more info

Aviara and Four Seasons cut ties - SignOnSanDiego.com

By Jennifer Davies, UNION-TRIBUNE STAFF WRITER

Tuesday, April 20, 2010 at 10:13 p.m.


The acrimonious relationship between the Four Seasons hotel management firm and the owner of Carlsbad’s Aviara Resort has ended in divorce after an arbitration panel decided Tuesday that the two companies should terminate their business agreement.

Broadreach Capital Partners, the owner of Aviara, said Four Seasons would be replaced by Park Hyatt, the upscale, contemporary Hyatt brand, as manager of the swanky 329-room resort by June 21. Four Seasons will continue to manage the Aviara’s 132 time-share villas.

Broadreach tried last year to fire Four Seasons, claiming the Toronto hotel management firm had not run the property in a “cost-effective manner” as the economy sputtered.

Four Seasons responded by barricading the property and blaming the resort’s financial problems on Broadreach’s debt load.

A federal judge sent the case to arbitration in May after months of nasty legal tussles between the two parties.

The arbitration panel concluded that both sides had “contributed to the demise of the business relationship.” As part of the termination agreement, Broadreach was ordered to pay compensation to Four Seasons. According to previous court documents, Four Seasons signed a 30-year contract in 1995 to manage Aviara and had three 20-year options to renew.

No additional details of the decision or the awards were made public. The length of Four Seasons’ management contract for the time-share properties was also not disclosed.
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