Marriott Says Waikiki Owner Bankruptcy Self-Defeating; Will Pursue Tens of Millions of Dollars in Damages
News Release from Marriott International, Inc.
BETHESDA, Md., Sept. 1, 2011 /PRNewswire/ -- The filing by the owner of the Waikiki EDITION and its legal advisors of a bankruptcy proceeding to prevent Marriott International, Inc. (NYSE: MAR) from retaking management of the hotel is a self-defeating step that ultimately involves the destruction of significant value of the owner's asset, Marriott said today.
Ed Ryan, Marriott International's executive vice president and general counsel, said, "While we are astonished at such a self-destructive course of action, we of course respect the law and the fact that a bankruptcy filing freezes any other legal orders for the time being. It is clear that this was a desperate step by the owner and legal advisors to circumvent the New York court's order returning the hotel to our rightful management and control. They will obviously stop at nothing in the effort to escape from the contractual obligations they made to us when they signed the management agreement.
"We will vigorously pursue tens of millions of dollars of claims for damages to the brand and our company in bankruptcy court over time. We understand the disappointment that our guests and employees feel about the current status of the Waikiki EDITION, and will strive to do all we can to help the transition to new plans."
The company said its court filings would counter the continuous stream of false and misleading statements regarding its management of the hotel by the owner and its legal counsel. For example, inaccurate statements by the owner notwithstanding, occupancy rates at the Waikiki EDITION were 67 percent in July and were running in excess of 80 percent in August prior to the illegal raid and seizure of the hotel by the owner and its partner overnight last Sunday. Yesterday, a New York court ordered that management of the hotel should be returned to Marriott.
Marriott said that guests holding reservations at the Waikiki EDITION could call Marriott Customer Care, at 1-800-559-9352 to receive more information and to change their reservations to other Marriott International hotels.
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