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condotel
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| 11/19/2007 11:23 PM |
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| Check this out... one of the sales person there has listed themselves as the Sales Manager at Setai since May 2007 on LinkedIn ( http://www.linkedin.com/pub/5/a59/834) |
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condotel
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| 11/19/2007 11:50 PM |
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| Also... if they have selected Setai to be the hotel operator and they've been trying to advertise under Setai... Why does the website still say The Diegan and the url is still www.diegan.com but I guess they are trying to create one under setaisandiego.com as well. I'm filing a complaint to the DRE for their handling so far so that they can investigate the sales people & the group. |
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Anonymous
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| 11/20/2007 7:38 AM |
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I think you guys should look at this purely from a financial point of view:
1.) How much does the room cost?
2.) What are the rents and expenses?
I trust you had this information when you signed up. |
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response to anon
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| 11/20/2007 7:52 AM |
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| The purpose of this site is for productive dialog among Diegan investors. You sound like a law student with limited knowledge who wants to advise people. Maybe your time would be better spent volunteering at a senior center or homeless shelter where people really could use your help, rather than monitoring chat sites that do not involve you. |
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Hard Rock envy
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| 11/20/2007 8:42 AM |
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Of course they didn't do any financial analysis. They were blinded by the hype. That is how these deals are marketed. How could anyone possibly think that any condohotel will actually have positive cash flow unless you have zero debt on it?
Hopefully you come out whole. |
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SpoiledBrat
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| 11/20/2007 9:42 AM |
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| Hey Hard Rock envy: You can have positive cash flow if you have debt. As long as the income is greater than the total outlay, you have positive cash flow. |
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Hard Rock envy
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| 11/20/2007 10:05 AM |
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Posted By n/a on 11/20/2007 9:42 AM
Hey Hard Rock envy: You can have positive cash flow if you have debt. As long as the income is greater than the total outlay, you have positive cash flow.
Let me rephrase it:
The deal structure for condohotels in San Diego makes it unlikely that the property will have positive cash flow unless the project is unleveraged.
Using the averages reported by sources (http://sandiegometro.com/2007/oct/hotels.php), the average rack rate ($211) and occupancy rate (74%) is too low to cover the costs of ownership (mortgage payment, RE Taxes, HOA) once the daily maintenance/cleaning fee ($50?) is taken off the top.
$211 - $50 = $161/2 = $80.50 per day * 74% = $59.57 average per day in revenues. This doesn't cover your costs on a $300,000+ hotelcondo room. |
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had it
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| 11/20/2007 11:49 AM |
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| The latest BS from them.........The whole lawsuit thing was just some misunderstandings and miscommunication..........its all worked out and resolved now.........YEAH RIGHT I am sure they tried to work things out prior to filing a lawsuit......the saga continues and the BS just gets deeper and deeper |
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Rebel rebel
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| 11/20/2007 2:39 PM |
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Come on all, misunderstanding, miscommunication. 60 lawsuits, CURRENT deadbeat dad, convicted felon in the LAST 2 YEARS, Setai sues 2 DAYS AGO, architect Tanner is off the project (NOT PAID). Anyone who would believe a con man like Rebeil, Benjamin (a 2theMart CON), is crazy. We need a receiver in place and fast.
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had it
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| 11/20/2007 3:57 PM |
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| They said they will not refund deposits at current time, I think they will have to if they dont have a management company in place and if we dont agree to terms. |
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condotel
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| 11/20/2007 8:18 PM |
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| to answer your question. NO, we were never given the financials. The salesperson said it was against SEC regulations to give that information. Especially since a hotel operator was not in place. I didn't think it would take nearly 1.5 years to finally locate one (and it sounds like Setai isn't even the one!!). |
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Anonymous
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| 11/20/2007 8:24 PM |
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Sounds to me like they should just sell the project to another developer, make a few bucks on the deal and move on.
Hotels are in demand downtown and many new buildings are planned. It's a good looking building so I don't think the developer is in big trouble unless they wasted a lot on construction or if the building ends up with any major flaws.
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aannoonn
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| 11/21/2007 8:42 AM |
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This project has been shopped for the past 2 years. No one believes the projected revenue. My OPINION is that the project will ditch the condohotel concept and be reflagged sometime soon.
Does anyone have an update on the Setai lawsuit? |
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Duped
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| 11/21/2007 9:00 AM |
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Yes. This project has been shopped around to anyone who will listen. Nobody is sold on the numbers. Does anyone know how Rebeil is going to convert it to a hotel if it was designed as multi use. I have talked to the former architect (not paid and off the job) and there may not be plans to change to just a hotel. ALSO, if you are not paying the architect your not paying anyone. Setai has basicly said that they have told him over and over that they will not sign an agreement and to stop using their good name associated with this SCAM. Rebeil told them "No, you signed a letter of intent," which any lawyer will tell you is not binding and that he will use the name or sue them. I think the whole play for Rebeil is going to be sue the world and hope for some money to fall out of the sky. That is what he did in Vegas.
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aannoonn
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| 11/21/2007 11:33 AM |
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Posted By n/a on 11/21/2007 9:00 AM
Yes. This project has been shopped around to anyone who will listen. Nobody is sold on the numbers. Does anyone know how Rebeil is going to convert it to a hotel if it was designed as multi use. I have talked to the former architect (not paid and off the job) and there may not be plans to change to just a hotel. ALSO, if you are not paying the architect your not paying anyone. Setai has basicly said that they have told him over and over that they will not sign an agreement and to stop using their good name associated with this SCAM. Rebeil told them "No, you signed a letter of intent," which any lawyer will tell you is not binding and that he will use the name or sue them. I think the whole play for Rebeil is going to be sue the world and hope for some money to fall out of the sky. That is what he did in Vegas.
Who is the construction lender? They will probably have the final say in what happens to the project sometime soon. |
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Anonymous
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| 11/23/2007 7:22 AM |
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The construction lender is BANK LG out of New York.
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Anonymous
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| 11/23/2007 7:22 AM |
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The construction lender is BANK LG out of New York.
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Hard Rock envy
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| 11/23/2007 11:35 AM |
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Posted By n/a on 11/23/2007 7:22 AM
The construction lender is BANK LG out of New York.
I imagine that they will soon have a say in the future of the project. |
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had it
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| 11/24/2007 5:16 PM |
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| The construction lender has nothing to do with these problems, they have constructed the building thats all they would be concerned about. |
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Hard Rock envy
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| 11/24/2007 6:05 PM |
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Posted By n/a on 11/24/2007 5:16 PM
The construction lender has nothing to do with these problems, they have constructed the building thats all they would be concerned about.
If they can't start paying off the construction loan because they haven't sold any condohotel units or been able to get a hotel operator, then the construction lender will have a say in it.
This PIG has been shopped all over town for 2+ years. I have the original proforma on my hard drive.
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