Owners in Beverly Hills Club are taking action against the problematic hotel management company after years of abuse. Excel Hotels & Resorts SA (“Excel”) have consistently failed to provide owners with statements, calculations and explanations. Most importantly they have failed to send owners the money they were promised. As previously reported 2019 was a fantastic year for hotel occupancy and yet Excel has not sent the owners the income they expected.
Excel has been trying to use the fact that ONA Group purchased Excel in 2019 as an excuse for the poor management and non-payment. The simple fact is that most of the staff at Excel are the same and the legal responsibility to pay owners and honour the contracts remains with Excel – independent of who bought the shares in the company.
Beverly Hills Club Owners Project
The Nordic Consulting has access to considerable legal expertise and has been funding a project for the owners in Beverly Hills Club to take back control of their complex. Co-ordinated by Trudy Woolley, the project´s lawyers have already prepared and sent registered notifications corresponding to more than 50 apartments.
In particular, owners have given notice i) to not continue with their rental contracts, and ii) to revoke the delegation of votes to Excel in the community of owners.
If you own an apartment in the complex and have not yet done so, we urge you to register on the website for the project – BHCOwners.com
Response from Excel
In response to receiving these notifications Excel has been calling owners and promising that very soon they will send them some “options”. No doubt the company will offer a new rental contract, which will probably have many of the same flaws as the previous one, including
- A long duration
- Delegation of voting rights in the community of owners to the hotel
- A misleading calculation of rental income that doesn´t inform owners of expenses they will have to pay such as local property taxes.
Perhaps most importantly Excel has consistently demonstrated that it cannot be trusted, no matter how good a rental contract may look on paper. In fact, many owners would have been happy with the rental contract they already have, but they have lost all trust in the company to honour its contracts.
Together you are stronger
The only long-term solution is for the owners to stay strong, to work together and to take back control of their own resort. By having their say in the community of owners, independently from the hotel, owners will finally be able hold the management company to account.