Hostile Takeover At Popular Luxury Hotel For Beach Miami Holidays

Hostile takeover at popular luxury hotel for beach Miami holidays

by

Susan Crown

One of the most sought after Miami hotels- the Setai South Beach has recently undergone an unusual management shake-up. The hotel, owned by Setai Owners LLC (a unit of Lehman Brothers) was managed by Singapore based firm General Hotel Management (GHM) until a hostile takeover on 31st March 2012 which saw GMH replaced by Trevi Luxury Hospitality Group a firm which specialises in luxury hotels and resorts.

GMH was ousted in a dramatic style, reminiscent of a something straight out of a film, with owners of the Setai South Beach arriving with armed guards at 2:30 am announcing the management change. According to a press release from GMH, ‘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’ The luxurious hotel has proven to be one of the most popular with travellers spending Miami holidays in South Beach. The Setai is currently ranked 14 out of 204 Miami Beach hotels on popular travel review website TripAdvisor. However, based on the information gathered following a ‘request for arbitration’ at the International Court of Arbitration of the International Chamber of Commerce in Paris, Lehman Brothers claim that under the GMH’s inefficient management the hotel was not as profitable at it should be claiming that GMH squandered $7.6 million in incremental profit. The Setai South Beach boasts three swimming pools, a spa- perfect for unwinding after the shopping sprees that most travellers relish when booking holidays in Miami, guests can also enjoy a wide range of dining facilities as well as the picturesque landscaping echoing the serene minimalist Asian-inspired motif woven throughout the hotel’s decor. A single night’s stay at this lavish hotel in Miami’s trendy South Beach can cost anywhere upwards of $725 USD. Given all that the hotel has to offer there is no doubt that despite the peculiar circumstances under which management changed hands, guests will continue to enjoy first class accommodation during their Miami holidays. Vice president of Lehman Brothers Holdings, Anthony Barsanti expressed optimism stating, ‘We believe that under the right management, this property has limitless potential’.

A hostile takeover at the end of last month has seen the Setai South Beach hotel change hands in a quick move that has left many in the industry astonished. The popular hotel, with a reputation for attracting thousands of travellers who choose to stay here during

Miami holidays

in South Beach, saw the Trevi Luxury Hospitality Group take over their former management firm, GHM.

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Hostile takeover at popular luxury hotel for beach Miami holidays