Hotel Owners Challenge Marriott-Starwood Merger
The owners of hotels in New York and Chicago are challenging Marriott International’s acquisition of Starwood Hotels & Resorts in court.
Cityfront Hotel Associates Limited Partners, which owns the Sheraton Grand Chicago, and Dream Team Hotel Associates, which owns the Westin Times Square in Manhattan, went to court Tuesday saying that the planned merger would violate their exclusivity arrangements. The suit was filed in New York State Supreme Court in Manhattan and seeks to block the two hotel giants from closing on the transaction.
Both Sheraton and Westin are brands owned by Starwood.
The deal was first announced in November of last year and was followed by a costly bidding war involving a Chinese consortium. Stockholders of both hotel chains approved the merger in early April.
The combined entity will be the world’s largest hotel company.
(Photo: Accura Media Group)