Reuters: Marriott, Schrager Sued by Hawaii Hotel Owner

May 30, 2011 — Reuters reports that owners of the Waikiki Edition have filed suit against Marriott International Inc. and hotelier Ian Schrager, Marriott's partner in creating the Edition brand. The lawsuit, filed by Bickel & Brewer on behalf of M Waikiki LLC, "seeks to end a 30-year management agreement and recover losses and overruns tied to the 353-room beachside hotel." 

"We believe empty promises were made in connection with the launch of Edition — and the damage done to our clients has been further compounded by Marriott's inability to effectively manage this property," said William A. Brewer III, partner at Bickel & Brewer and lead counsel for M. Waikiki LLC. "Based on the breaches of its contractual obligations to our client, we are seeking to remove Marriott from the management of the Hotel." 

To read the full report, click here. 

The Wall Street Journal: Hawaii Hotel Sues Marriott

May 26, 2011 — The Wall Street Journal reports that the owners of the "stylish but unsuccessful" Waikiki Edition in Honolulu have filed a lawsuit seeking to end their management agreement with Marriott International Inc. In the lawsuit, filed by Bickel & Brewer on behalf of client M Waikiki LLC, the owners claim Marriott has "failed to make a flashy new hotel brand a success." 

The lawsuit also named Ian Schrager, Marriott's partner on the Edition brand, as a defendant in the suit, "alleging that the famed hotelier has been uninvolved in the project."

The report states, "The owners now allege Marriott was responsible for construction overruns, as well as cost overruns after the hotel began operating. The owners say the hotel has lost $6 million since it opened in October 2010, with occupancy just around 30% in the fourth quarter of 2010, far below the 62% occupancy Marriott predicted in August 2009."

To read the full report, click here.