28 August 2011
Hotel Lawyer update on Hotel owners terminating hotel operators. Over the years we have spent a lot of time on the subject of getting a great hotel operator and terminating bad ones. Owner discontent seems to erupt when operators continue to deliver disappointing results and ignore owner’s requests to drive the top line and manage costs. Then the operators wonder why owners are upset. See for example “Terminating hotel management agreements when things don’t work” and “How to terminate a hotel management agreement when an operator really deserves it!“.
Turnberry Isle Resort back under founding family’s management and control.
Over the weekend, the owners of the Turnberry Isle Hotel & Resort in Aventura, Florida took control of their hotel and terminated their relationship with Fairmont Hotels.
The resort was created by the Soffer family’s Turnberry Associates in the 1970s, and reacquired in 2006. Turnberry recently completed a $150 million renovation. The hotel had been operated by the Fairmont chain until Sunday, August 28, 2011.
Looking to the future, C. Scott Rohm, President of Turnberry Hotel Group, said, “We’ve had a long relationship with Fairmont Hotels and thank the company for its efforts,” However, he said it was time for a change. “Turnberry Hotel Group is re-emphasizing the glamour, personalized service and experiences that reflect the iconic resort’s unique history and character.”
Nearly all staff members invited to stay. All reservations will be honored and no change in scheduled events
In a statement, the company said that nearly all Turnberry Isle staff members have been invited to stay. The management change should not affect existing reservations or scheduled events.
Founded more than five decades ago by Donald Soffer, Turnberry Associates’ signature properties include Aventura Mall, Fontainebleau Miami Beach and Porto Vita in South Florida, Turnberry Place and The Residences at MGM Grand in Las Vegas, Union Station hotel in Nashville, Tenn., and Destin Commons in Florida’s Emerald Coast.
This development was carried as breaking news by the Miami Herald on August 28, 2011.
The owners of the Edition Waikiki in Honolulu also terminated Marriott as their operator and replaced Marriott with Aqua Hotels. See Marriott Loses Trendy Waikiki Hotel as Owner Changes Locks Overnight.
Other articles on Hotel Law Blog about terminating hotel management agreements
Ritz-Carlton breached contractual and fiduciary duties under hotel management agreement giving rise to free termination, $10.3 million in damages plus attorneys fees. When will hotel operators “get it”?
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