From the latimes.com:
A long-running dispute over who would manage the Aviara resort in Carlsbad, Calif., has been settled, with Park Hyatt emerging as the new operator. By summer, it will no longer be known as Four Seasons Resort Aviara.
Last year, real estate investors who own the hotel said Four Seasons, which managed the property on their behalf, was spending too much money keeping up appearances in a depressed market. They wanted to eject the fancy hotelier and bring in another operator. Four Seasons, the owners said, was to blame for financial mismanagement and breach of its fiduciary duties to the owners.
Four Seasons, which has a reputation for luxury, denied the allegations and declined to leave the Aviara. Four Seasons is known for securing elaborate contracts with owners that ensure it will be able to maintain hotels according to its standards.
An arbitration panel found this week that Four Seasons did not breach the management agreement or its fiduciary duties to the owners, led by Broadreach Capital Partners. The panel determined, however, that both parties contributed to the demise of their business relationship and that the management agreement should be terminated, according to a joint statement by Four Seasons and the owners.
Hyatt Hotels Corp. said Tuesday that Broadreach and co-owner Maritz, Wolff & Co. selected Hyatt to manage Aviara as part of its luxury Park Hyatt portfolio. The company expects to assume management of the hotel June 21, when it will become known as the Park Hyatt Aviara Resort.
From the U-T’s version:
The arbitration panel concluded that both sides had “contributed to the demise of the business relationship.” As part of the termination agreement, Broadreach was ordered to pay compensation to Four Seasons. According to previous court documents, Four Seasons signed a 30-year contract in 1995 to manage Aviara and had three 20-year options to renew.