BETHESDA, Maryland—Marriott International has responded to the company’s loss of its first Edition hotel by defending its long-term agreements and reiterating its commitment to the brand.
M Waikiki LLC, the owner of the 353-room hotel in Waikiki, said it has selected an affiliate of Aqua Hotels & Resorts to manage the property. Also, the hotel has been renamed Modern Honolulu.
Marriott’s ouster comes amid allegations the company mismanaged the hotel and failed to fully develop the Edition brand.
In its statement, emailed to HotelNewsNow.com after deadline Monday, Marriott said:
“This is a deeply unfortunate, regrettable and illegal event. The owner and its partners raided the hotel literally under cover of night, forcibly taking over the property and threatening our employees with dismissal unless they immediately agreed to a change of management. We will aggressively and vigorously pursue all remedies against the owner and its partners in this illegal act, which was completely and blatantly in violation of Marriott's contractual agreement with the owner.
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"At the same time we are firmly and deeply committed to Edition. Both our Waikiki and Istanbul Edition hotels opened to rave reviews from media and guests. Marriott has invested more than (US)$400 million to open fabulous Edition hotels in two preeminent gateway destinations, London and Miami Beach, which will wow guests when they open over the next year or two.”
William Brewer, attorney for the hotel’s owner, said in his own statement that the owner of the hotel is seeking to preserve its US$250-million investment.
Brewer also addressed the middle-of-the-night takeover.
“The owner took over control at a time that was the least disruptive to guests and employees. This was a peaceable transition,” he said.
The licensing contract with Marriott was in the second year of a 30-year management contract. According to published reports, Marriott will seek substantial damages from the hotel's owner and its partners for their conduct in damaging the operation and reputation of the hotel.
As of this morning, the brand's web site listed open hotels in Waikiki and Istanbul. Hotels listed as "coming soon" included: Barcelona, Mexico City; Bangkok; South Beach; and London.