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Two Hotel Owners Suing Marriott and Starwood Over Upcoming Merger

May 11, 2016
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3 min read
westin new york times square
Two Hotel Owners Suing Marriott and Starwood Over Upcoming Merger
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The Marriott and Starwood saga continues — this time, though, it's not a Chinese insurance firm that's trying to outbid Marriott.

Now, the owners of hotels in Chicago and New York are suing Marriott and Starwood on the grounds that the merger would violate exclusivity agreements. Cityfront Hotel Associates Limited Partners, the owner of the Sheraton Grand Chicago, and Dream Team Hotel Associates LLC, which owns the Westin New York at Times Square are suing the two hotel corporations. The grounds for the suit? The merger would unfairly eat into their business, as both of the properties represented are Starwood hotels (more on that below).

The plaintiffs in the case are suing on the grounds that the merger violates clauses in their contracts that prohibit Starwood from owning, franchising, operating or managing other hotels within a specific geographic area surrounding the two hotels. The Westin New York at Times Square is located within two blocks of one of the largest hotels in the city, the Marriott Marquis, which would become one of its biggest competitors, and also under the same umbrella of Marriott-Starwood when the merger is finalized.

The Marriott Marquis is located within two blocks of the Westin New York at Times Square.

Only time will tell if this lawsuit as any affect on the upcoming merger, which is expected to close in the middle of this year. If anything, this merger seems to be running into more roadblocks than expected.

To recap everything that's happened to date regarding the merger, check out these posts below:

May 1, 2015 — Rumors of IHG preparing a bid to acquire Starwood

October 28, 2015 — Starwood CEO Adam Aron mentions the possibility of a sale during an earnings call

November 16, 2015 — Marriott announces its intention to acquire Starwood

November 20, 2015 — Marriott CEO Arne Sorenson addresses questions about Marriott and SPG

January 22, 2016 — TPG chatted SPG with Marriott’s Vice President of Loyalty

February 24, 2016 — TPG shares plans to attend a Marriott loyalty forum in Los Angeles

March 14, 2016 — Starwood and Marriott acknowledge Anbang’s bid

March 18, 2016 — Starwood accepts Anbang’s bid

March 18, 2016 — Starwood CEO Tom Mangas addresses the latest acquisition news

March 21, 2016 — Marriott Outbids Anbang with Latest Offer for Starwood

March 28, 2016 — Marriott Isn't Submitting a Higher Bid for Starwood Hotels

March 31, 2016 — Anbang Won't Be Acquiring Starwood After All

April 19, 2016 — Marriott's Integrating Some SPG Benefits Long Before the Merger

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H/T: Bloomberg

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  • Solid welcome bonus

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  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
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  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
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