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Late Edition news: Marriott back in Hawaii
If you were a guest in the Waikiki Edition Marriott this week you might have been confused as what was happening in the hotel.
On Sunday, Marriott lost control of the hotel after the hotel’s owners, M Waikiki LLC, in the early morning hours, installed new management, changed locks and put up signs reflecting a new name, the Modern Honolulu.
The owners claimed that they had the legal right to make the change because Marriott had mismanaged the hotel. The changes were made despite a contract that allows Marriott to run the hotel for 30 years.
On Wednesday, however, the owners of the hotel were ordered by a New York state judge to return the hotel to Marriott’s control by early Thursday morning.
Immediately, the hotel owners filed for bankruptcy protection in Hawaii, telling a court that filing for bankruptcy protection allowed them to continue operating the hotel because it prevented enforcement of previous legal actions.
The owners say the hotel has lost US$8.4 million since it opened in October 2010, with occupancy around 30% in the fourth quarter of 2010, far below the 62% occupancy Marriott predicted in August 2009.
In a media release, Arne Sorenson, Marriott International’s president and chief operating officer, said, “The past few days have been trying, frustrating and confusing for our guests and employees.
“We’re glad the judge returned the Waikiki Edition to our hands. We are in the process of resuming operations.â€
Ian Jarrett
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