Cityfront Hotel Associates Ltd -owner of the Sheraton grand Chicago- and Dream Team Hotel Associates -owner of the Westin Times Square in New York- are both challenging Starwood's takeover by Marriott and brought their case to the NY Supreme Court. They argue that the deal would violate local exclusivity clauses defined in their management contracts.
The New York State Supreme Court, New York County (Manhattan), will arbitrate this case. The result will be interesting to evaluate the impact of such clauses and risks stemming from scrutiny by competition authorities. The plaintiffs demand the deal to be canceled as their first option, or at least an early repudiation of their contracts.
For those of you wishing to follow up on this case's further developments in upcoming weeks, search "652521/2016" or "CityFront Hotel Associates Limited Partnership v. Starwood Hotels & Resorts Worldwide Inc."on the New York State Supreme Court Website's search tool. The full original complaint is available here:
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