GHM has been cleared of claims of mismanagement at The Setai Miami by property owner Lehman Brothers after two years or arbitration proceedings in Florida.
The ICC International Court of Arbitration last week ruled that the allegations brought against GHM were groundless and ordered damages to be paid to the hotel company for improper termination of the hotel management agreement.
In March 2012, Lehman Brothers forcefully took over The Setai Miami with claims that GHM was mismanaging the property.
However, Lehman’s own expert during the trial admitted that GHM had “achieved RevPAR levels 76 per cent higher than the competitive set”.
In its findings, the Tribunal rebuked Lehman for seeking excuses for termination of the agreement. Lehman is expected to make full compensation to GHM within 30 days of the ruling.
GHM president, Hans R Jenni, said in a media statement: “Needless to say, we are very pleased with the Tribunal’s 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 calibre.”
