GHM Wins in Arbitration Over Setai Miami

Travel News Asia Videos Podcasts Latest Travel News Asia Monday, 16 June 2014

Following two years of arbitration proceedings in Florida after the forceful takeover of The Setai Miami by its owner, Lehman Brothers, in the pre-dawn hours of 31 March 2012, the ICC International Court of Arbitration ruled yesterday that all previous allegations of mismanagement were baseless and have awarded damages to GHM for improper termination of GHMs hotel management agreement.

In its findings, the Tribunal concluded that GHM complied with the contract in all respects and chided the owners attempts to find excuses to terminate the management agreement.

Even Lehmans own expert at the trial had conceded that GHM achieved RevPAR levels that were 76% higher than the competitive set, and despite his many years of experience in the hotel business, he could not recall any other hotel that had consistently earned such a RevPAR premium over its competitors.

GHM President Hans R. Jenni, said, Needless to say, we are very pleased with the tribunals conclusion, along with the complete and total legal victory. More importantly, it vindicates GHM of the wrongful accusations and upholds our reputation as a hotel management company of the highest repute and caliber.

Daniel F. Benavides, legal counsel for GHM, added, This was a hard-fought case. But ultimately the tribunal found that all of Lehmans accusations of mismanagement were entirely unfounded. The tribunal also went out of its way to recognize the many impressive accolades received by the Setai under GHMs management and that GHMs efforts and reputation were primarily responsible for the condo-hotels record breaking success. This is a well-deserved victory for GHM. We could not be happier for such an outstanding group of professionals.

Lehman has been given 30 days from the date of the tribunals decision to make full compensation to GHM.

GHM, Setai, RevPAR, Miami

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