One of my goals with this blog is to experiment with different types of content providing variety to my readers. This week I began with a humorous article on Monday. Now I present you with “Hotel Bytes,” a weekly blog focusing on interesting events in the hotel business…
Fontainebleau Spars With Subcontractors
The Fontainebleau Miami Beach Resort, which completed a comprehensive restoration last November (2008) is known as one of the most iconic destination resorts in the world. The company invested well over a billion dollars in the project.
There has been a significant ongoing billing dispute between Fontainebleau and some of its construction subcontractors. For details of this challenge refer to the news article published by the Palm Beach Post.
Yesterday I received a copy of an open letter addressing this issue on behalf of the resort. The letter, signed by Howard Karawan, Chief Operating Officer of Fontainiebleau Resorts, LLC can be viewed here.
Here are the key points of that letter:
- The disputes with subcontractors that have arisen represent a very small fraction of the dollars spent by Fontainebeau on this project.
- Such disputes are commonplace in projects of this magnitude but understandably, their resolution is nonetheless important to all those involved.
- During the final stages of construction the resort uncovered significant over-billing by various construction entities.
- This discovery prompted an extensive audit of all work performed by outside professionals contracted for the project.
- While the audit verified the alleged over-billing actions by some subcontractors, it also caused payment delays for the many honest ones who worked on this project, as well.
- Fontainebleau is working to bring these legal matters to an end by continuing to evaluate all outstanding liens and has every intention of paying for work that was completed as agreed.
- The resort states the “business implications of these legal matters in no way affect our day to day operations at the resort.”
Scottsdale “Room Rate” Special
Earlier this week, I posted a tweet regarding a “Room Rate Promotion” unveiled by Hoteliers in Scottsdale, AZ. The article, posted by IGroupToday can be viewed here. The essentials of the offer are as follows:
- Submit a proposal received from any hotel or resort property from across the contiguous U.S. (except Maricopa County), Hawaii, Canada, or Caribbean to the Scottsdale CVB.
- The Scottsdale CVB will match that offer to a comparable Scottsdale property and meet or beat the room rate, dates, meeting facility space and room night requirements.
- This program is valid for new meetings booked and actualized in Scottsdale through March 31, 2010.
- 41 hotels/resorts in the Scottsdale are participating. See the Igrouptoday article for more information.
- The Scottsdale CVB can be reached at 480-421-9733.
If you have questions or would like more information on these news clips or assistance please feel free to contact me!
If you hear about interesting news in the hotel biz please post it here in the comments section, or you can email me at email@example.com. Have a great Holiday weekend!