Marriott/Starwood Merger Hits Another Snag
by Cheryl Rosen /Marriott at Key Center in downtown Cleveland, Ohio. Photo:
Marriott International Inc.’s bumpy road to acquiring Starwood Hotels & Resorts Inc. has hit another pothole, as two Starwood hotel owners have sued to stop the proceedings.
Cityfront Hotel Associates Limited Partners, owner of the Sheraton Grand Chicago, and Dream Team Hotel Associates, owner of the Westin Times Square in New York, sued Marriott and Starwood in New York state court on Tuesday, arguing the merger will violate their exclusivity agreements and hurt their business.
Marriott was preparing to complete the deal, valued at $12.9 billion based on Monday’s closing prices, by July, following a tumultuous, month-long bidding war with China’s Anbang Insurance Group. It would create the world’s largest hotel operator by room count, and add 1,300 properties in 10 brands to the Marriott stable, including Sheraton, W, St. Regis, and Westin.
