in World News Marriott Sues After Hotel Is Converted to Migrant Shelter
A franchisee for Marriott International is being sued by the parent company for an alleged breach of contract made by converting a hotel into a shelter for migrants, just before the site’s grand opening.
In the lawsuit, filed August 5 in the Southern District of New York federal court, Marriot alleges franchisee Pride Hotel abandoned and breached its contract by opening the facility to an unauthorized “alternative use.”
Marriott is demanding payment for damages totaling at least $2.6 million.
The conversion of the Jamaica, New York, hotel into something of a migrant shelter happened without Marriott’s permission, the parent hotel giant claims.
“After more than eight years of construction and development caused by numerous delays by Pride Hotel, and just months before its deadline to open the Hotels, Pride Hotel willfully breached the Franchise Agreements so it could instead pursue a lucrative government contract to provide shelter to migrants and asylum seekers,” Marriott’s lawsuit states.