December 9th, 2011

Marriott owner files lawsuit aimed at new Marriott sales strategy

9 Dec, 2011

A lawsuit filed Tuesday by a longtime Marriott hotel owner seeks $20 million in damages, claiming Marriott's newly revamped sales structure has cost it business.

In the suit, the owner of a 3-year-old, $52 million Residence Inn in Alexandria, Va., says that the hotel's sales have been low despite its location in suburban Washington D.C., new amenities, guest rooms and ample meeting space.

The suit alleges that Marriott recently revamped its sales force and outsourced the function to regional sales offices, causing the loss in sales.

The lawsuit was filed by MG-Carlyle Hotel, an affiliate of Miller Global Properties, which is a Denver-based real estate company that has owned various Marriott hotels over the last 30 years. It says cites other hotel operators have also seen negative consequences from the sales revamp.

In addition to $20 million in damages, the suit also seeks an order requiring Marriott to pay back millions of dollars of management fees and other money that Marriott was paid while allegedly violating its management agreement with the owner.

Topic : Marriott, Lawsuit, Sales Strategy
External Source : USA Today

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