Management Scuffle at The Setai South Beach

SetaiSouthBeach

It seems there is somewhat of a scandal over The Setai South Beach. Last Saturday, March 31, owner representatives of The Setai South Beach arrived at the hotel and told then-owners General Hotel Management (GHM) that they would be taking over the property, a move somewhat similar to the situation that unfolded over the Waikiki Edition last summer.

GHM released a statement today, Tuesday, April 4, stating, "Lehman Brothers (a part of the hotel's ownership group) have ignored a valid contract, stormed the hotel, and have taken the law into their own hands." The Setai's owners dismissed GHM alleging mismanagement at the property, according to the Miami Herald.

The Setai South Beach has been operated by GHM since 2005.

Hans R. Jenni, President and Director of GHM said in the statement, "At this time we are not in a position to comment on the specifics of their allegations. We are in conversations with our lawyers and will take the necessary steps to ensure that Lehman Brothers complies with the requirements of the management contract in place. The allegations shared by Lehman Brothers' council are defamatory, damaging and without basis."

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