San Diego Luxury Resort Welcomes New Management; Four Seasons Terminated Amid Claims of Financial Mismanagement (United States)
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San Diego Luxury Resort Welcomes New Management; Four Seasons Terminated Amid Claims of Financial Mismanagement (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- New brands / Affiliations
This is a press release selected by our editorial committee and published online for free on 2009-05-11
Owners of a leading hotel investment and ownership group today announced Dolce Hotels and Resorts as the new management company of the former Four Seasons Resort Aviara ("Aviara"), a luxury resort property in north San Diego County, California. Dolce expects to take over the management and administrative functions of the resort at 1 p.m. Monday, May 11. The property will be managed as an independent luxury resort.
The owner, Aviara Resort Associates, announced that it selected Dolce following the termination of Four Seasons from its position as manager of the Aviara resort - amid allegations that Four Seasons breached its fiduciary duties in connection with the 329-room luxury property. The case will be closely watched in the hotel and investment community, as hotel owners seek greater transparency and financial responsibility from the management companies with whom they associate.
"The owners terminated Four Seasons because they lost trust and confidence in its management of their resort," says William A. Brewer, partner at Bickel & Brewer and lead counsel for the owner.
Owners terminated Four Seasons and the management agreement between the parties on March 29, 2009, but Four Seasons refused to acknowledge that termination - or relinquish control of the hotel property. A legal action was filed April 1 against Four Seasons in San Diego, seeking an injunction prohibiting Four Seasons from continuing to manage and operate the Aviara hotel. Also, the Owner has commenced arbitration proceedings against Four Seasons, seeking tens of millions of dollars in financial damages.
Dolce will now assume complete financial and managerial control of the resort. Employees are invited to meet with Dolce representatives to make arrangements for their continued employment at the resort.
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