Bloomberg News

Marriott Sued for Mismanaging Eden Roc Hotel in Miami Beach

April 02, 2012

Marriott International Inc. (MAR:US) was sued for $75 million by the owner of the Eden Roc Renaissance Hotel in Miami Beach over accusations the hospitality company mismanaged the hotel.

Eden Roc LLLP accused Bethesda, Maryland-based Marriott and its Renaissance Hotel Management unit of “gross mismanagement” after it invested more than $300 million in the hotel, including a $240 million renovation, according to the complaint filed today in New York State Supreme Court in Manhattan.

Marriott flooded the hotel with discount bookings for years, the complaint alleges. As a result, the hotel generated a “mere fraction” of the $30 million in profit projected for 2011 and the $35 million forecast for 2012, according to the suit.

“In the face of Renaissance’s failures, Eden Roc has quite literally shoveled money into the project to make up for Renaissance’s incompetence,” Eden Roc said in the complaint. “And while Eden Roc loses its shirt, Renaissance and its parent company and guarantor, Marriott International, have lined their pockets with management fees.”

Hepburn, Bogart

The 21-floor, 631-room art deco hotel, located on Millionaire’s Row in Miami Beach, opened in 1956 and has hosted celebrities including Elizabeth Taylor, Katherine Hepburn and Humphrey Bogart, according to its website.

The hotel, which was featured in several episodes of the 1950s television show “I Love Lucy,” was designed by architect Morris Lapidus, who also designed the Fontainbleau next door.

Eden Roc LLLP said in documents filed in New York State Supreme Court last month that it was suing Marriott International over the renovation of the hotel. Before today’s complaint was filed, Eden Roc withdrew that lawsuit without giving a reason.

Marriott International and Todd Soloway, an attorney for the plaintiffs, didn’t return telephone messages seeking comment on the lawsuit.

The case is Eden Roc LLLP v. Marriott International Inc. (MAR:US), 651027/2012, 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: Andrew Dunn at adunn8@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • MAR
    (Marriott International Inc/DE)
    • $66.37 USD
    • -0.46
    • -0.69%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus