Bloomberg News

Marriott Sued Over $200 Million Renovation of Eden Roc Hotel in Florida

March 02, 2012

Marriott International Inc. (MAR) was sued in New York state court for breach of contract over the $200 million renovation of the Eden Roc Renaissance Hotel in Miami Beach, Florida.

Eden Roc LLLP is seeking more than $16 million in compensatory damages and a declaration that it can terminate an agreement with Bethesda, Maryland-based Marriott governing the operation of the hotel, according to documents filed in New York State Supreme Court today.

Eden Roc accuses Marriott of inducing it to spend more than $200 million to renovate the hotel, including adding a new guest tower, a spa, meeting and banquet rooms, and a restaurant. Marriott then developed two new “boutique” hotel brands in direct competition with Eden Roc, according to the court filing.

Marriott also “grossly mismanaged” the hotel and implemented a “fatally flawed strategy” in which about 80 percent of transient room nights were sold at a discount during the past three years, Eden Roc said. Transient rooms are booked by individual guests, rather than groups.

Marriott didn’t immediately return a voice-mail message seeking comment on the lawsuit.

The case is Eden Roc LLLP v. Marriot International, 650624/2012, New York State Supreme Court (Manhattan).

To contact the reporter on this story: Chris Dolmetsch in New York at cdolmetsch@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus