The high quality Auckland hotel, the Westin, has shut down half of its accommodation units whilst shareholders battle over ownership of space and brand at the high-profile property.
The dispute is between receivers of the property’s owners and those who have invested in rooms at the hotel as a long-term investment being managed by the Westin administration and marketing. A collapsed real estate firm is at the heart of the problems, with the receivers, KordaMentha, saying the dispute could take seven months to sort.
So far 100 staff have lost their jobs as a result, and there are doubts over whether the Westin’s advance bookings for the 2011 World Rugby Cup will be honoured.
The company at the core of the dispute is Melview, which developed the Lighter Quay property under unit title, with owners expected to pay management fees before receiving income from room tariffs. The major creditor of Melview, for whom the receivers are acting, is the Bank of Scotland.
Related posts:
