Resort Owner Battles With Four Seasons

A potentially nasty legal battle broke out last week over management of the Four Seasons Aviara resort north of San Diego. The owner of the property says it will remove Four Seasons at 1 p.m. today and install Dolce Hotels and Resorts as operator of the 329-unit luxury resort. In the battle of news releases, Four Seasons on Saturday said it has no intention of voluntarily giving up management of the hotel.

The dispute surfaced in March when the owner, Aviara Resort Associates, terminated its management agreement with Four Seasons due to alleged “breaches in fiduciary duties” in the operation of the property. According to local news reports, the owner accused Four Seasons of failing to run the hotel in a “cost-effective and efficient manner.” Further, it charged the operator with not building occupancy and revenues and wasting money. Four Seasons says it has “fulfilled all of its obligations under the relevant management agreements” but the owner failed to “provide working capital needed to fund debt service.”

When Four Seasons refused to accept the termination, the owner, represented by hard-nosed lodging lawyer William Brewer of Bickel & Brewer, filed suit. The two parties also entered arbitration proceedings over the dispute.

Dolce, which intends to run the hotel as an independent, has also been making news lately. Last week, the New Jersey-based operator of conference centers and other hotels, assumed management of the Seaview, a historic golf and meeting resort near Atlantic City that Marriott had operated for 25 years. The firm, now headed by former Wyndham Hotel Group President Steve Rudnitsky, also added some high-powered executive talent to its team, including former Wyndham Hotels & Resorts President Peter Strebel.

Broadreach Capital Partners, which is part of the Aviara ownership group, also owns Dolce. Dolce is not involved in the legal proceedings and had no comment on that matter. “We understand the outgoing manager is disputing the owners' right to effect a management change,” says Rich Roberts, a spokesperson for Dolce.  “We trust that the owners and the outgoing manager will work to resolve the issues promptly. When they have done so, we will be ready to take over the resort’s management smoothly and efficiently, and we are sure that the outgoing manager will work with us professionally and cooperatively in this transition.”

Roberts says Dolce was not involved in the decision to make a change and was one of several management choices considered by the ownership group. When asked what Dolce can do differently than Four Seasons, Roberts said: “We’ve been asked to drive improved sales through our expertise in meetings and conferences.”

The Aviara opened under Four Seasons management in 1997. Its facilities include an 18-hole golf course and nearly 80,000 square feet of meeting space. In addition to 285 guestrooms and 44 suites, the complex has 256 residential units.


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