A long simmering, bitter civil war has broken into the open between investors at Le Soleil Hotel, one of downtown Vancouver's better known boutique hotels.

The battlefield, already littered with more lawsuits and counterclaims than a bad mosquito day in Winnipeg, now sees the hotel with two reception desks to welcome guests.

Vancouver hotel figure and businessman Zul Somani's Sunbelt Hotel Management Services Ltd. and Executive Inc. runs hotel operations through an affiliate, Le Soleil Hospitality Inc.

But, on the second floor, 567 Hornby Apartments Ltd., led by investors Jewel Nomani and Vancouver medical practitioner Dr. Andrew Louie have opened their own reception desk.

This seemingly bizarre business arrangement is virtually unheard of and is merely the latest development in a complex drama that has dragged in investors from Singapore, Malaysia, Indonesia the U.S., Bahrain and Canada.

Trying to cut through the legal maze -- at last count there were something like 14 active lawsuits pending -- is a test in itself, but in essence, it boils down to a battle for control by investors over their investments.

Somani says there are close to 100 units in the hotel pool, while 567 claims control of 31 rooms, which they are attempting to rent out. 567 has changed all the locks on its doors, managed to put in its own telephone line, runs its own website and has a Vancouver City licence to operate as a hotel.

"We also have our own concierge, cleaners and laundry services," says Nomani.

The pair say they have the potential over the next few months to bring 60-64 rooms under their control.

Nomani said Louie's rooms had been empty for a year before the pair acted to protect their investments and "we are now getting revenue from our rooms."

Nomani, a Vancouver businessman says that Somani has gained control of the strata council and he and Louie are merely moving to protect and enhance their investments and produce revenue.

The pair also believe Somani is attempting to buy up units from other investors on the cheap by offering under-market prices.

"His game plan is to try and get total control of a building that cost $34 million for around $16 million. He has a powerful legal team and they keep throwing out lawsuits hoping to exhaust the remaining investors into selling to him," Nomani says.

However, Somani refuted that outright and says he only owns one unit in the building.

"I am not in the business of buying and selling suites but we have investors who want to," he said in an interview yesterday.

He said he has never heard of two reception desks in a hotel in Vancouver and says he doesn't believe it will work.

The soft-spoken Louie says it is a "filthy war and I got tired of being kicked around."

Investors, mainly from Singapore, initially paid between $240,000 and $280,00 for their units. Recent room sales have been in the $160,000 to $170,000 range.

Le Soleil opened its doors for business in1999 with 128 units, 119 rooms, at a cost of approximately $35 million. It was developed by American Corporate Suites (Canada) Inc. led by then Vancouver businessman Barry Hong.

American went bankrupt and the receivers sold the hotel's common property leases, including the car park and lobby areas to Sunbelt for $1.53 million, a sale approved in 2002 by receiver D. Manning and Associates of Vancouver.

One of many lawsuits claims Sunbelt's leases of the common property are not valid as they were sold without the owner's permission.

The Singapore Straits Times quotes Singaporean management consultant K.W.Tan, a Le Soleil investor, saying Sunbelt is forcing the owners to sell their units at a loss by holding on to common areas essential to hotel operations.

Somani denied in an e-mail to the paper that Sunbelt is causing owners to sell their units at very low prices. "In the past, we've bought units offered for sale either in the open market or directly offered to us by individual owners," Somani said in his e-mail..

Sharookh Daroowala, president of the LMS 3837 strata council of the hotel said in an interview yesterday that "the January 2005 elections to the strata council were fair and square and conducted and supervised by Crosbie Property Management Ltd. who oversees maintenance of the property.

"Mr. Nomani and his group unsuccessfully tried to control the strata council but lost by a wide majority," he said.

"Le Soleil Hospitality Inc. has commenced legal proceedings against Mr. Nomani and Dr. Louie and others alleging breach of fiduciary duty, breach of confidence, conspiracy, wrongful interference with contractual relations, inducing breach of their contract and have applied for an injunction restraining Nomani and others from further participation.

"Originally the Somani group was at odds with approximately 90 owners, but most of them have since settled their differences and given the units to Le Soleil Hospitality Inc. to manage or have sold their units."

Daroowala said the injunction application will be heard next month. Well over $2 million has been spent in legal fees in the last three years, he added.

An irony: Last year the hotel was named by influential Conde Nast Traveller magazine as one of "the world's best places to stay."