The owner of the landmark Fairmont Hotel Vancouver building is suing luxury retailer Christian Dior for allegedly reneging on an agreement to extend its lease.
This is happening despite Christian Dior continuing to operate a store in the hotel, and staff at that store telling BIV that they are unaware of any plans for the store to close.
Plaintiff Hotel Vancouver (GP) Inc., as general partner for and on behalf of Hotel Vancouver LP, filed the lawsuit May 27. It’s suing Christian Dior Couture Canada Inc. and Christian Dior Couture SA.
The landlord claims that Christian Dior first agreed to lease space at the 900 West Georgia Street site in 2014, and that this lease agreement came with renewal options.
“On or about Feb.19, 2015, the parties entered into an amendment of the lease, in which the term of the tenancy was revised so as to run from May 15, 2015 until May 14, 2025.”
The Hotel Vancouver claims Christian Dior in June 2022 sent a notice to renew the lease “until May 14, 2035.” This was in lieu of exercising two separate renewal terms of five years each, according to the lawsuit.
“On or about Oct. 31, 2023, the tenant, through its general counsel, confirmed to the landlord in writing that it had exercised both of its renewal options under the lease per the notice to renew,” the Hotel Vancouver wrote.
The landlord said in its lawsuit that it replied in writing on Nov. 20, 2023, to acknowledge that the tenant had exercised its right to two five-year renewal terms.
The parties then set out to negotiate the new market rental rate for the new agreed-upon 10-year term, the Hotel Vancouver said.
That is when things allegedly fell apart.
The landlord is alleging that “on or March 5, 2025, and during the course of the parties’ negotiations, the tenant advised the landlord that it was no longer possible for the tenant to enter into a 10-year renewal of the lease. The tenant then purported to renege on its renewal of the lease.”
The landlord said that it responded the next day to confirm that the tenant had formally exercised its renewal option for 10 years.
“The tenant has subsequently refused to enter into further negotiations to establish the market rental rate for the renewal term of 10 years, and continues to assert that no renewal of the lease has occurred.”
The Hotel Vancouver is seeking a declaration that the defendants have breached the lease, and “specific performance of the lease.” In particular, it wants the lease to be renewed, plus damages, it said in its lawsuit.
An alternative settlement could be for general and specific damages in lieu of specific performance and those damages for breach of contract.
BIV spoke to people at the Christian Dior store at the hotel and the manager said she could not comment.
BIV reached out to the company’s corporate affairs arm and spoke with a representative but the company has not responded to BIV's request for a comment.
The company has not yet filed a response to the notice of civil claim and none of the allegations in the lawsuit has been tested in court.
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