Classic Residence by Hyatt
Encyclopedia
Vi is a national developer, owner and manager of high-end retirement communities across the United States
. It is a privately held corporation
founded in 1987 by its Chairman, Penny Pritzker
. As of May 2011, the company housed over 6,000 residents and employed 3,936 workers. According to the 2010 American Seniors Housing Association
, Vi is the 21st largest owner of senior living communities. In September 2011, it was announced that Vi would sell its nine rental communities to Senior Housing Properties Trust.
Vi is a distinct business entity from Hyatt hotels and Global Hyatt Corporation. Leadership, management and day-to-day operations of the company and all of the communities remain unchanged after the renaming and rebranding of the company to Vi.
In 2008, Classic Residence by Hyatt sold its trademark and agreed to discontinue use of the Hyatt name. When the new name - Vi - was revealed to residents at its Palo Alto community in June 2010, there was reportedly "an audible escape of air from the aged crowd" that included "murmurings of disbelief."
Vi said in a release that it would continue to own and operate the CCRCs but it did not say for how long. After the sale was announced, the SeniorCare Investor reported that Vi’s ownership “wanted to sell the entire entity,” but “the valuations from buyers for the entrance-fee CCRCs were not close to what the seller wanted to get” and that Vi “would put those on the backburner” to focus on selling the rentals.
Vi has historically been owned by the Pritzker family
trusts. In the last five years, the Pritzker family has sold over $12 billion in assets, presumably pursuant to the family's contentious settlement that splits up their business empire by this year's deadline.
, and most communities include some units for assisted living
. There is no entrance fee, but residents pay a monthly fee tied to a yearly lease
.
CCRC’s offer a wider range of services than rental retirement communities. Most CCRC’s offer “continuing care programs” for qualifying seniors which allows them to move into assisted living, skilled nursing, and Alzheimer’s support programs as their health declines for the same monthly fee they had paid for their independent rental apartment, with certain additional ancillary charges. Monthly fees pay all operating expenses at the community, including medical care. In most of its CCRCs, Vi can adjust monthly fees with thirty to sixty days notice.
and deceit, elder abuse
, breach of fiduciary duty, unfair business practices
, and violation of part of the California health and safety code
. Vi denied any wrongdoing, but reached a settlement with residents in 2008 that included, among other things:
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. It is a privately held corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
founded in 1987 by its Chairman, Penny Pritzker
Penny Pritzker
Penny Sue Pritzker is an American business executive, and a member of the Pritzker family of Chicago, one of America's wealthiest business families...
. As of May 2011, the company housed over 6,000 residents and employed 3,936 workers. According to the 2010 American Seniors Housing Association
American Seniors Housing Association
The American Seniors Housing Association , established in 1991 as a group of the National Multi Housing Council, and became a non-profit organization ten years later on January 1, 2001....
, Vi is the 21st largest owner of senior living communities. In September 2011, it was announced that Vi would sell its nine rental communities to Senior Housing Properties Trust.
Vi is a distinct business entity from Hyatt hotels and Global Hyatt Corporation. Leadership, management and day-to-day operations of the company and all of the communities remain unchanged after the renaming and rebranding of the company to Vi.
History
Vi was founded in 1987 by its chairman Penny Pritzker, under the name Classic Residence by Hyatt. The company owns and operates 19 communities throughout the United States. For over twenty years, Classic Residence by Hyatt built its reputation on its relationship with the Hyatt hotel brand. In 2007, company president Randal Richardson said that "Classic Residence by Hyatt has really translated the quality of the Hyatt brand into luxury senior living."In 2008, Classic Residence by Hyatt sold its trademark and agreed to discontinue use of the Hyatt name. When the new name - Vi - was revealed to residents at its Palo Alto community in June 2010, there was reportedly "an audible escape of air from the aged crowd" that included "murmurings of disbelief."
Potential Sale
The SeniorCare Investor reported in early 2011 that Vi was for sale, and that the process has been “shrouded in secrecy.” On September 1, after months of rumors, it was announced that Senior Housing Property Trust would buy Vi’s nine rental communities for $478 million. The company expects to close on most of the communities in the fourth quarter of 2011. The rentals will be managed by Five Star Quality Care.Vi said in a release that it would continue to own and operate the CCRCs but it did not say for how long. After the sale was announced, the SeniorCare Investor reported that Vi’s ownership “wanted to sell the entire entity,” but “the valuations from buyers for the entrance-fee CCRCs were not close to what the seller wanted to get” and that Vi “would put those on the backburner” to focus on selling the rentals.
Vi has historically been owned by the Pritzker family
Pritzker family
The Pritzker family is one of America's wealthiest families, and has been near the top of Forbes magazine's "America's Richest Families" list since the magazine began in 1982....
trusts. In the last five years, the Pritzker family has sold over $12 billion in assets, presumably pursuant to the family's contentious settlement that splits up their business empire by this year's deadline.
Services
Vi operates two types of retirement communities: rental retirement communities and continuing care retirement communities (CCRC). Rental retirement communities offer amenities such as shared dining rooms and light weekly housekeepingHousekeeping
Housekeeping is the act of cleaning the rooms and furnishings of a home. It is one of the many chores included in the term housework. Housecleaning includes activities such as disposing of rubbish, cleaning dirty surfaces, dusting and vacuuming. It may also involve some outdoor chores, such as...
, and most communities include some units for assisted living
Assisted living
Assisted living residences or assisted living facilities provide supervision or assistance with activities of daily living ; coordination of services by outside health care providers; and monitoring of resident activities to help to ensure their health, safety, and well-being.Assistance may...
. There is no entrance fee, but residents pay a monthly fee tied to a yearly lease
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...
.
CCRC’s offer a wider range of services than rental retirement communities. Most CCRC’s offer “continuing care programs” for qualifying seniors which allows them to move into assisted living, skilled nursing, and Alzheimer’s support programs as their health declines for the same monthly fee they had paid for their independent rental apartment, with certain additional ancillary charges. Monthly fees pay all operating expenses at the community, including medical care. In most of its CCRCs, Vi can adjust monthly fees with thirty to sixty days notice.
Quality of Care
Vi continuing care retirement communities offer several different levels of onsite care to its residents. Care availability depends on community location and can include assisted living, skilled nursing, memory support and Alzheimer's, etc. Each community undergoes state and county public health department inspections on a regular basis. In 2007, Florida regulators temporarily placed their Lantana facility on a state-wide nursing home watch list for "failing to provide adequate and appropriate health care and protective support to all residents," according to the Florida Agency for Health Care Administration.Litigation
Resident at Vi’s La Jolla community filed a class action lawsuit against Vi in 2006. Residents had accused the company of fraudFraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
and deceit, elder abuse
Elder abuse
Elder abuse is a general term used to describe certain types of harm to older adults. Other terms commonly used include: "elder mistreatment," "senior abuse," "abuse in later life," "abuse of older adults," "abuse of older women," and "abuse of older men."...
, breach of fiduciary duty, unfair business practices
Unfair business practices
Unfair business practices encompass fraud, misrepresentation, and oppressive or unconscionable acts or practices by business, often against consumers and are prohibited by law in many countries. For instance, in the European Union, each member state must regulate unfair business practices in...
, and violation of part of the California health and safety code
Health law
Health Law is the federal, state, and local law, rules, regulations and other jurisprudence affecting the health care industry and their application to health care patients, providers and payors, and vendors to the health care industry, including without limitation the relationships among...
. Vi denied any wrongdoing, but reached a settlement with residents in 2008 that included, among other things:
- A lump sum payment to residents,
- A 3% annual ceiling on monthly fee increases through 2013 for residents who took part in the lawsuit, and a 4% ceiling for every subsequent year, and
- Improvements to the Wellness Center.
Communities
| Continuing Care Retirement Communities | Rental Retirement Communities |
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