Westin calls time on Auckland waterfront
Travellers booked at The Westin Lighter Quay on Auckland's viaduct are being offered rooms elsewhere after The Westin pulled out of running the hotel.
Starwood Hotels and Resorts put out a statement this morning saying its management agreement to operate the hotel under The Westin brand will cease on July 29.
Whether that means the over 50 rooms operating under the Westin brand will close or be managed by another hotel operator is still unclear.
The waterfront hotel has been caught in a battle between disgruntled investors, who control 116 units in the hotel and management company Lighter Quay Management which controls more than 50 rooms.
Developer Nigel McKenna Management Lighter Quay has been placed in receivership last year owing to the Bank of Scotland $ 16.6 million.
The investors alleged they had not received "something like" returns promised by the manager of the hotel.
The line between the receiver and investors unhappy degenerated to the point where two hotels were operating under one roof at the site of the viaduct - one managed by the receiver and the Westin, the other by the unit with investors led by Graham Wilkinson in the Viaduct Harbour Hotel name.
The situation is clearly untenable for owners of Starwood Westin.
Starwood said in a statement said he had worked closely with the receivers with respect to the "ongoing dispute" with the owners of certain parts of the hotel.
"But the dispute could not be resolved, and Starwood Hotels and Resorts has been unable to continue operations as usual."
The Westin Auckland director Sales and Marketing Donald Katie said Westin was going through its reservations to come and ring people and tell them "what happens".
They would be offered accommodation in other hotels in Auckland, she said.
Starwood does not operate any other hotels in the city.
She did not know if this means that more than 50 rooms that had been managing the Westin just closed after Friday, but there was "nothing to do with the Westin" BusinessDay.co.nz and returned to the receiver.
Receiver David Ruscoe of Grant Thornton would not comment this morning.
Investors representing Wilkinson said he was "not our fault" The Westin was leaving and took a shot at Lighter Quay KordaMentha first receiver.
"The real cause is the failure by the original receiver to negotiate a fair settlement for owners of units on a transparent market.
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Travellers booked at The Westin Lighter Quay on Auckland's viaduct are being offered rooms elsewhere after The Westin pulled out of running the hotel. Starwood Hotels and Resorts put out a statement this morning saying its management agreement to
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