Coral Hospitality has been hired by Gansevoort South's new owner, Credit Suisse, to manage operations at the 334-room hotel and 259 adjacent condominiums. Column Financial Inc., a Credit Suisse affiliate, took ownership of the property at 2377 Collins Ave. from New York City-based father-and-son developers William and Michael Achenbaum in a foreclosure in late January.
The Achenbaums, who also have Gansevoort hotels in New York City and the Turks and Caicos, had hoped to retain management of the Miami property, which recently underwent a $100-million renovation. The owners failed to pay an $89-million mezzanine loan on the condo-hotel conversion, which also carried a $309-million first mortgage.
Earlier this month, the Achenbaums filed a lawsuit in Miami-Dade Circuit Court trying to block Column Financial from changing management. They referred to Coral Hospitality, without naming the firm in a complaint, as "a management company with inadequate operating experience for the clientele, style, cachet and vast array of amenities of a Gansevoort property."
Coral Hospitality, which manages nearly 30 hotels in the Southeast and Caribbean, says it has built its reputation operating leisure hotels and resorts throughout Florida. The company has prior experience managing South Beach hotels and points to the Sandpearl Resort in Clearwater Beach as an example of its success.
"Our record speaks for itself, so comments from the previous management group are clearly without merit," Lee Weeks, CEO of Coral Hospitality, tells GlobeSt.com. He adds that Gansevoort South guests and residents should not notice any disruption in service or amenities during the transition, and most employees will have the chance to be rehired under new management.
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