August 29, 2011 — The Wall Street Journal reports that, in a "dramatic move," the owners of the Waikiki Edition in Hawaii installed new management and changed the signs and locks on their property overnight to reflect a new name, the Modern Honolulu. The report states that the "changes were made in spite of a contract that allows Marriott [International Inc.] to run the hotel as an Edition for 30 years."
William A. Brewer III, counsel for M Waikiki LLC, the hotel owner, told the Journal that his clients have the legal right to terminate the contract, alleging that Marriott is mismanaging the property.
The Journal reports that, in a legal filing in May in New York Supreme Court, M Waikiki claimed Marriott "had failed to make the flashy new Edition hotel brand a success, resulting in the Waikiki location underperforming relative to its market." The owners said further that occupancy for the fourth quarter of 2010 had been 30% — well below the 62% rate predicted by Marriott.
To read the full report, click here.