NEW YORK- HOTEL BUSINESS. has learned that a snag in the deal that would have sent the Rihga Royal hotel in New York, to Strategic Hotel Capital of Chicago, possibly in joint venture with Carlson Hotels Worldwide, likely has more to do with issues between the joint venture partners than it has to do with the seller, Rihga International USA.
Strategic wanted a disproportionate amount of control considering how much money each was putting in, said one industry source, who requested anonymity.
However, another trade source with knowledge of the deal said that talks could still be revived if the partners are determined to resolve their differences.
Laurence Geller, CEO of Strategic, would say only that “there was never any deal,” and that Strategic was simply bidding on the property along with many others. Reached in his office, Shuichi Shermazo, president of Rihga International USA, offered no comment. (10/23/00) – Jay Nussbaum