The Greenbrier Resort
WHITE SULPHUR SPRINGS – The drama involving the $500 refinancing deal for The Greenbrier apparently is over for now.
The Justice family and Kennedy Lewis Investment Management announced August 14 the completion of a new joint venture they say will “enhance the long-term vision for The Greenbrier and provide the capital and expertise to strengthen and preserve America's Resort for its guests, both long-standing and new.”
Justice
Litigation focusing on the refinancing and receivership of the resort has been in the news for months. White Sulphur Springs Holdings, an affiliate of Omni Hotels, held liens on more than $300 million in debt accrued by the family of U.S. Senator Jim Justice related to the resort.
The closure of the refinancing deal had been delayed several times, and even had threatened operations of the resort’s casino.
Also Friday, the West Virginia Lottery told Greenbrier leadership it could continue casino operations – with caveats – while it reviews the financial transaction.
Greenbrier officials thanked the Lottery Commission and said they look forward to “working cooperatively through the review process as it considers final approval of the new ownership structure.”
The Greenbrier and its casino will remain open and fully operational throughout the transition. Leaders said existing reservations, meetings, conferences, weddings and other scheduled events will continue as planned.
“This is a great day for The Greenbrier and all of West Virginia,” Justice said in a statement. “When our family stepped forward to save The Greenbrier in 2009, plenty of folks thought we had lost our minds. The resort was in bankruptcy, people had lost their jobs and many believed the glory days of America’s Resort were over. But we knew what The Greenbrier meant to West Virginia, and we knew it was worth fighting for.”
Justice said his family put “our own money, our hearts and our lives into The Greenbrier and into West Virginia.”
“We invested here, created jobs here, took risks here and fought like crazy to keep this treasure alive when it would have been a whole lot easier to walk away,” he said. “I’m incredibly proud of that record, and nobody can ever take it away.
“Our new partners bring tremendous experience and fresh ideas, while Jill and our family bring deep West Virginia roots and an understanding of the traditions and people that make this place so special. That is a powerful combination.
I truly believe The Greenbrier’s best days are still ahead, and Cathy and I could not be more excited about what comes next.”
The Greenbrier’s new leadership team says the joint venture – which gives KLIM 51 percent controlling interest in the resort – provides the resort “with a robust financial foundation and underpins long-term investment in the resort, its facilities and the guest experience.”
Gov. Patrick Morrisey, who became governor after fellow Republican Justice termed out and ran for his U.S. Senate seat, issued a statement about the change in Greenbrier ownership.
“West Virginia’s iconic Greenbrier Hotel is now under the majority ownership and controlling interest of Kennedy Lewis, a New York-based private credit and opportunistic asset firm,” said Morrisey, who has butted heads with his predecessor over the years. “With Kennedy Lewis now officially controlling the resort, I welcome them to West Virginia.
“I also want everyone to know – especially those in Greenbrier County – that I will do everything in my power to protect this historic West Virginia jewel and its employees. … I’m hopeful that Kennedy Lewis and the entire Greenbrier team will help restore the beauty of the resort to its former glory.”
Morrisey also said he has asked “the Lottery Commission to take all necessary steps to prevent the loss of Greenbrier employees during this transition of ownership.”
KLIM appointed Lloyd Nathan as chairman of The Greenbrier’s Board of Directors. He has decades of experience in hospitality, gaming, real estate, investment and development that includes a decade with MGM Resorts International.
“The Greenbrier is one of the truly irreplaceable destination resorts in the United States,” Nathan said. “Very few properties can match its history, natural beauty, scale, amenities and emotional connection with generations of guests.
“Our intent is not to change what makes The Greenbrier special but to invest in its future, enhance what makes it exceptional and ensure America's Resort continues to thrive for generations to come.”
David Chene, KLIM managing partner, agreed.
“The Greenbrier is a truly unique American institution, with a remarkable history, dedicated employees and a special connection to West Virginia and its guests,” Chene said. “By combining Kennedy Lewis's financial, strategic and operational resources, Lloyd Nathan's thoughtful and proven oversight as chairman and the Justice family's deep local roots, we have built a powerful platform to invest in the property's long-term future, and reinforce its standing among the premier destination resorts in the world.”
Jill Justice, the senator’s daughter, echoed the sentiments of the others.
“Today marks an exciting new chapter for The Greenbrier and an important moment for everyone who loves this resort,” she said in a press release. “This property is so much more than a resort. It is part of the history of West Virginia, an economic anchor for this community and a place where generations of families have celebrated the most important moments of their lives.
“Our collaboration provides the financial strength, expertise and long-term investment needed to protect everything that makes The Greenbrier special.”
