Hotel owners mount legal challenge to Marriott’s Starwood acquisition

Sunday, 11 May, 2016 0
As the proposed acquisition of Starwood Hotels edges toward a conclusion, a last minute legal challenge has emerged.
 
Two owners with hotels in the Starwood portfolio want to block the $13 billion Marriott International takeover as they claim it would violate existing management contracts.
 
Cityfront Hotel Associates Limited Partners, which owns the Sheraton Grand Chicago, and Dream Team Hotel Associates LLC, owner of the Westin Times Square in New York, filed a joint lawsuit in New York seeking to stop the deal.
 
Sheraton and Westin are both Starwood brands.
 
The owners claim current contracts in place forbid Starwood from operating other hotels within a specified geographical area around the two hotels.
 
The two owners claim the Marriott deal would add more local competition and adversely impact their business.
 
When the acquisition is finalized it will create the world’s largest hotel company, adding 10 Starwood brands to Marriott’s already sizable global portfolio.
 
Marriott and Starwood both declined to comment on the legal challenge, Bloomberg reported.
 
The deal is expected to complete by the middle of this year.
 


 

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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