Bloomberg News

Marriott Wins Ruling Against Miami Beach Hotel Owners

November 08, 2012

Marriott International Inc. (MAR:US), the largest publicly traded U.S. hotel chain, won a court ruling barring what the company called an attempted hostile takeover of the Eden Roc Renaissance Hotel in Miami Beach, Florida.

New York State Supreme Court Justice Melvin L. Schweitzer in Manhattan on Oct. 26 granted Bethesda, Maryland-based Marriott’s request for a preliminary injunction preventing the owners of the Eden Roc from taking any actions to remove or replace the company as manager of the hotel, and urged the two sides to resolve the case, according to court filings dated today and yesterday.

“We can either appoint a mediator with great hotel experience in this matter, you can pick one of your own, it can all be done under my auspices, but that’s my offer, it stands and for all concerned, especially, as I said, a fan of Eden Roc from years back when I passed over Fontainbleau and went next door, I would hope that you could arrive at some kind of a solution,” Schweitzer said in an Oct. 26 hearing, according to a transcript.

Eden Roc LLLP sued Marriott and its Renaissance Hotel Management unit in April over accusations Marriott mismanaged the property after it invested more than $300 million in the hotel, including a $240 million renovation.

Marriott sued Eden Roc LLLP in the same court last month, accusing the owners of attempting a hostile takeover of the 56- year-old hotel, and Schweitzer granted them a temporary restraining order preventing them from removing Marriott.

Preliminary Injunction

Schweitzer on Oct. 26 also denied Eden Roc LLLP’s motions for a preliminary injunction against Marriott and to vacate the temporary restraining order, according to the court filings made public today.

The 21-floor, 631-room art deco hotel, located 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 neighboring Fontainebleau.

The case is Marriott International Inc. v. Eden Roc LLLP, 653590/2012, New York State Supreme Court, New York County (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


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