May 13, 2016
First Marriott International Inc. was in a fractious bidding war against Anbang Insurance Group of China to acquire Starwood Hotels & Resorts Inc. Now, the company is facing hotel owners who claim the merger would violate exclusivity agreements.
Cityfront Hotel Associates LP, which owns the Sheraton Grand Chicago, has joined forces with Westin Times Square owner Dream Team Hotel Associates LLC, to sue Marriott and Starwood in New York state court. The plaintiffs argue that the merger violates contract clauses prohibiting Starwood from owning, franchising, operating or managing other hotels within a certain geographic distance from the two hotels.
Sheraton and Westin are owned by Starwood.