WASHINGTON, DC— Marriott International— as reported by Reuters— has denied allegations contained in a lawsuit filed by Strategic Hotel Capital LLC that it fraudulently concealed profits from hotels it manages that are owned by the Chicago-based plaintiff. On Aug. 20, Strategic Hotel Capital file suit against Marriott in Los Angeles Superior Court, alleging Marriott failed to disclose relevant financial data about three hotels it owns in Southern California, according to a story appearing in the Wall Street Journal. The suit claims Marriott has hidden profits that Strategic Hotel Capital believes are rightfully theirs, and alleges Marriott has failed to disclose charges for hotel programs and services designed to enhance the Marriott brand… without any benefit to the owners, according to the newspaper report. “The lawsuit is categorically baseless and unfounded,” a Marriott spokesman reportedly told Reuters. “The filing is prohibited by a comprehensive and far-reaching restructuring agreement they signed with us just over two years ago.” This complaint is the latest of several similar suits filed by hotel owners against Marriott in recent weeks. Along these lines, Marriott reached agreement last month with sister firm Host Marriott Corp., the largest owner of Marriott-managed hotels, on some issues said to be similar to those in the SHC lawsuit. SOURCE: Reuters
