DATE: September 16, 2019
SUBJECT:
Title
RESOLUTION CONSENTING TO A SPA OPERATIONS AND SUB-MANAGEMENT AGREEMENT BETWEEN HYATT CORPORATION, AS AGENT OF HST SAN DIEGO HH LP, A DELAWARE LIMITED PARTNERSHIP (DBA MANCHESTER GRAND HYATT SAN DIEGO), AND SANFORD SPAS, LLC, A FLORIDA LIMITED LIABILITY COMPANY (DBA MARILYN MONROE SPAS), FOR ONE FIVE-YEAR TERM WITH TWO FIVE-YEAR OPTIONS TO EXTEND.
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EXECUTIVE SUMMARY:
The District entered into a sixty-six (66) year amended and restated lease (Lease) with Manchester Grand Resorts, L.P. (dba Manchester Grand Hyatt) on June 5, 2001 for the operation of two hotel towers providing over 1,600 guest rooms, meeting and banquet space, 909 restaurant seats, and 1,150 parking spaces, located at the southeast corner of Harbor Drive and Kettner Boulevard, in the City of San Diego.
Manchester Grand Hyatt leases the hotel and subleases the leased premises to HST San Diego HH LP (dba Manchester Grand Hyatt San Diego). Hyatt Corporation (Hyatt) manages and operates the hotel on behalf of Manchester Grand Hyatt San Diego pursuant to a hotel management agreement consented to by the District. Hyatt is serving as agent for Manchester Grant Hyatt San Diego.
Hyatt requests the District's consent to a Spa Operations and Sub-Management Agreement (SOSA) to allow Sanford Spas, LLC (dba Marilyn Monroe Spas), to establish and operate a full-service spa providing a wide variety of treatments, procedures, and services to hotel guests and the general public on a portion of the leased premises.
The SOSA was entered into by Hyatt and Marilyn Monroe Spas and was effective September 30, 2018. Hyatt and Marilyn Monroe Spas are requesting the Board of Port Commissioners' (Board) consent to the SOSA. If approved by the Board, the SOSA between Hyatt and Marilyn Monroe Spas would be for a term of five (5) years, having commenced on September 30, 2018 and ending September 29, 2023. The agreement includes two five (5) year options to extend the term...
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