News for the Hospitality Executive
BEACH, FL – Nikki Beach recently severed its ties with a condominium
project under development in Playa Blanca on Panama’s Pacific Coast,
and has taken
legal action against the local developer, Panama’s Casa
de Campo Farallon, S.A., according to Peter Higney, director of
Nikki Beach Hotels & Resorts, Miami Beach.
“As a global five-star brand, we set certain standards for the design, construction and operation of our properties.” Higney said. "We have a responsibility to maintain our brand standards and under no circumstances would we allow the developer to use our brand and misrepresent us to our loyal Nikki Beach customers."
On Thursday Nikki Beach filed an injunction in U.S. District Court in Miami against the Panama developer to prevent the unauthorized use of its name, brand and any other intellectual property belonging to the company.
A growing global hotel and resort operator, Nikki Beach has a strong Hotel Division with offices in Europe and the Middle East. The company has 10 projects in the pipeline in locations such as Croatia, Greece, Cyprus, Qatar, Cape Verde, Thailand, Spain and new projects in the making, added Higney.
Referring to the situation in Panama, Higney said that as of August 2010, the local developer had breached an operating agreement by failing to conform to the brand’s standards, architectural guidelines and operating requirements, as well as by misrepresentation of the brand. Additionally, the developer missed the opening date in 2008.
Consequently, Nikki Beach declared the developer in default, but gave the developer another chance to correct the numerous problems found by an on-site inspection in September 2010. When the developer did not respond, Nikki Beach sent a notice of termination on November 22, 2010.
Without Nikki Beach serving as the “exclusive operator” of the resort as called for in the contract, the developer had no right to open the resort in December, 2010 using the Nikki Beach brands, added Higney, since Nikki Beach had no way to insure quality control over such unauthorized use of its five-star brand.
“As a global lifestyle brand firmly growing in the luxury boutique hotel niche, protecting our brand’s standards and intellectual property are paramount issues,” Higney said.
About Nikki Beach Hotels and Resorts:
Nikki Beach Hotels and Resorts is a worldwide premier luxury brand synonymous with jet set travel, leisure and entertainment. Founded in 1996 by Jack Penrod, Nikki Beach South Beach established a new standard for unique and exciting Beach Club experience.
Nikki Beach has expanded over the years with venues in St Tropez, St Barth’s, Cabo San Lucas, New York City, Marbella and many other high-profile destinations. In 2007 Nikki Beach developed the Hotels & Resort concept to offer a unique hospitality experience for its worldwide customers Its five-star hotels and resorts offer the theatrical entertainment Nikki Beach Style, interactive events that are heavily influenced by Art, Music, Fashion, & Film that has been the hallmark of the brand since the 1990s. For more information, visit www.nikkibeachhotels.com.
Proby & Associates
Nikki Beach Brand Opening its First Full-service Resort in the Turks
& Caicos Islands / March 2008
|Nikki Beach Owner Jack Penrod Embarks on Expansion Into Branded Hotels, Casinos and a Cruise Ship; Claims 8 Hotels Ready to Go / January 2007|
|Partnership to Create Nikki Beach Hotel on the Top Three Floors of the the Grand Sierra Resort Hotel in Reno, a Hotel Within a Hotel / February 2007|
|Opening July 2008, Seven Stars Resort Casts a Celestial Spell in the Turks & Caicos Islands / February 2008|