In March the owners announced their intention to terminate their agreement with Four Seasons, accusing it in a complaint filed in U.S. District Court of failing to operate the Aviara "in a financially efficient and cost-effective manner."
An arbitration panel led by a former federal judge is expected to decide in the coming weeks whether the owners can eject Four Seasons and proceed with their plan to bring in Dolce Hotels and Resorts as the new manager.
Broadreach is the majority owner of Dolce, a New Jersey-based operator of 23 upscale inns in mostly secondary markets that cater to the convention and meeting industry. The only property it manages in California is the historic Dolce Hayes Mansion in San Jose. By bringing in its own manager, Broadreach stands to ease the traditional tension between owners and operators.
"The owner is all about maximum bottom line," said Carl Winston, director of the hospitality and tourism management program at San Diego State University.
"Four Seasons is all about brand integrity. That is more important to them than the bottom line."
More tension between owners and operators is likely as the hospitality industry struggles through its most troubled period since the Depression. In San Diego County alone, about 11 hotels are in default or close to it, Winston said.
"In good times, everyone's interests are more aligned, but in a down cycle the owner can feel like a drowning man," Winston said. "He just wants to breathe and the manager wants to renovate."
People are afraid throughout the hotel business, said Donald Wise, an investment banker who specializes in the industry. He agrees that more dust-ups in the hotel business are likely.
"No one knows when the market is going to turn around," Wise said. "Right now we are all pretty grumpy and ornery to live with."
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roger.vincent@latimes.com
