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Marriott faces legal challenge to Starwood acquisition
A last minute legal challenge has been made to Marriott’s proposed acquisition of Starwood Hotels.
Two owners with hotels in the Starwood portfolio want to block the $13 billion Marriott International takeover as they claim it would violate existing management contracts.
Cityfront Hotel Associates Limited Partners, which owns the Sheraton Grand Chicago, and Dream Team Hotel Associates LLC, owner of the Westin Times Square in New York, filed a joint lawsuit in New York seeking to stop the deal.
Sheraton and Westin are both Starwood brands.
The owners claim current contracts in place forbid Starwood from operating other hotels within a specified geographical area around the two hotels.
The two owners claim the Marriott deal would add more local competition and adversely impact their business.
When the acquisition is finalised it will create the world’s largest hotel company, adding 10 Starwood brands to Marriott’s already sizable global portfolio.
Marriott and Starwood both declined to comment on the legal challenge, Bloomberg reported.
The deal is expected to complete by the middle of this year.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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