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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).
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