Don't know exactly, but Sunset has been there a LONG time, MUCH before this sale of the long lease. My supposition is that it's a question of who they will need to pay, versus not being able to stay there. I believe what was illegal was the sale by the former Caravanseri owners of the long lease rights to the land, not the lease of the property by Sunset.
Wow... what a mess. So the Country owns the land, and these companies get long lease rights. Now this makes more sense on what is going on. The splitting of the lease should have been recognized as an issue when or if it was filed.