FORT LAUDERDALE, FL— A suit alleging two counts of fraud and conspiracy has been brought against the corporations Wellesley Inn & Suites Franchising, Inc,. and Prime Hospitality Corp. “As a publicly-traded company, we feel it is imperative to make the public aware of the situation brought about by the actions of the sellers (Wellesley Inn & Suites Franchising, Inc,. and Prime Hospitality Corp.) of the hotel located at 5070 North State Road 7 in Fort Lauderdale, FL,” stated Prakesh Patel, owner, Sunrise Hotel Management, LLC, named plaintiffs in the suit. The suit alleges that assets in the form of computer data were to be turned over to the purchasers on the closing of the sale. The computer data included detailed records of corporate clients and travel agents frequenting the property. In fact, Prime would sell the hotel with the actual computer equipment included. However, after further investigation by the plaintiffs, it was alleged that systematic and deliberate attempts to remove and delete the client and travel agent records from the computers prevented the plaintiffs from receiving financial benefits of these contacts expected after the sale. To continue the use of the branding of the hotel, the plaintiffs were obligated to join a reservation system which listed this property, along with the other properties owned by the defendants, for referral. The plaintiffs claim that the defendants chose to refer potential business to properties which remained in their portfolio, and as such are pursuing recession of the franchise agreement.
