Hotel Maren Ft. Lauderdale

The construction project for Hotel Maren, a Curio Collection hotel by Hilton, has attracted several construction liens, one of which totals $4.7 million.

Hotel Maren is a new 12-story luxury hotel along Florida A1A in the heart of Ft. Lauderdale Beach. The 250,000 square-foot development, owned by MHF Las Olas VI, LLC, has 136 rooms with balcony space, a VIP lounge, pool, bar, and other amenities. The hotel is scheduled to open in December of 2020.

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Since January, contractors working on Hotel Maren, also known as the Las Olas Ocean Resort project, have filed a total of nine construction liens. While seven of the nine claims filed with the Broward County Clerk have since been released, two are still active.

General contractor Straticon LLC and subcontractor Al Karch Energy both still hold active mechanics lien claims.

Straticon filed a $4.7 million mechanics lien on August 11, 2020. The GC was hired by MHF Las Olas VI under a $34.8 million contract to furnish labor, material, and other related services for the hotel’s construction. Straticon worked on the project from September of 2018 through May of 2020.

A construction lien, commonly known as a mechanics lien, is available to contractors who haven’t been paid for construction work or materials. It inhibits the property’s sale, putting pressure on the owner or general contractor to pay the outstanding debt.

Al Karch Energy Services was hired by subcontractor Bridge Mechanical for work involving flue piping at Hotel Maren. After going unpaid after furnishing their labor and materials for the improvements, Al Karch Energy filed a mechanics lien for just over $5K against MHF Las Olas. Their mechanics lien claims the full contract price, as they have yet to receive any payments.

According to Florida lien law, contractors have one year from recording to enforce a mechanics lien. Enforcing a mechanics lien initiates a lawsuit, and the process could result in the forced sale of the property in order to satisfy the debt.

MHF Las Olas VI, an affiliate of Magna Hospitality, is a Rhode Island based company which first hit the airwaves in Ft. Lauderdale after purchasing the Las Olas Ocean Resort in November of 2018.

Construction on the resort was halted in 2017 after a series of financial issues with the original developer. A foreclosure lawsuit was filed on the property, forcing its sale. Shortly after, MHF bought the property and secured a $51.5M construction loan so work on the property could continue.

In recent months, South Florida has seen a massive spike in construction payment disputes across a variety of industries.