Marriott sues franchisee for turning Queens hotel into migrant shelter

Marriott International has filed a $2.6 million federal lawsuit against a hotel in Queens for becoming a migrant shelter in violation of its franchise agreement. The hotel chain claims the owners of the Pride Hotel in Jamaica had a 2015 deal with Marriott to operate a dual-branded Aloft and Element hotel at 149-03 Archer Avenue

Marriott International has filed a $2.6 million federal lawsuit against a hotel in Queens for becoming a migrant shelter in violation of its franchise agreement.

The hotel chain claims the owners of the Pride Hotel in Jamaica had a 2015 deal with Marriott to operate a dual-branded Aloft and Element hotel at 149-03 Archer Avenue, according to the complaint filed last week in the Southern District of New York.

Pride Hospitality Group was supposed to open a dual-branded Aloft and Element hotel at 149-03 Archer Avenue in Jamaica, Queens. Google Maps

Marriott alleged the hotel’s owner, Pride Hospitality Group, made a “lucrative” agreement with the city to house migrants and asylum seekers “just months before” its slated Nov. 1 opening, after eight years of construction. In doing so, it broke the agreement and gave up the right to use Marriott branding.

By Aug. 22, 2023, Marriott says it confirmed the property — an 18-story hotel with 283 units near John F. Kennedy International Airport — was being used for migrant housing.

Pride Hotel nevertheless kept using Marriott’s signage and proprietary marks, the suit claims.

The lawsuit alleges the Pride Hotel breached its franchise agreement and failed to remove Marriott’s branding. Bloomberg via Getty Images
Marriott International has filed a $2.6 million federal lawsuit against a hotel in Queens for becoming a migrant shelter in violation of its franchise agreement. Bloomberg via Getty Images

Pride Hotel sent Marriott a letter proposing an agreement to use the hotels for migrant housing. Marriott provided a list of requirements that needed to be satisfied in order to consider the change in use, but didn’t hear back for two months — while migrants continued to live on site, according to the suit. Pride Hotel meanwhile sent Marriott none of the franchise agreement’s required fees, the suit maintains.

Marriott says it sent Pride notices of default and provided opportunities to resolve the issue in November and December to no avail, before terminating the agreement on March 18.

Having Marriott signage on a migrant hotel has “caused and will continue to cause significant harm to Marriott,” the suit claims. In addition, Marriott says it would be tough for it to reenter the lucrative Jamaica market serving JFK, as it’s “already saturated with existing hotels.”

Pride Hotel could not immediately be reached for comment.

Total
0
Shares
Leave a Reply
Related Posts

North Carolina woman accused of throwing newborn in dumpster in 1987 — as DNA helps crack nearly 37-year-old cold case

Originally Published by: Christina Hall jokes about '4th ex husband' while calling out suitors Horrific murder reported in 2023's 'safest city in America,' shocking details emerge Gwen Stefani Gwen Stefani cancels Atlantic City concert due to 'recent injury' A woman was arrested in connection with a nearly 37-year-old cold case in which a newborn baby
The Latest: Harris closes in on running mate pick
Read More

The Latest: Harris closes in on running mate pick

Vice President Kamala Harris, grappling with how to keep early 2024 Presidential election momentum alive, is also preparing for a crucial week that includes her most critical decision yet: choosing a running mate The Latest: Harris closes in on running mate pickBy The Associated PressThe Associated Press Vice President Kamala Harris, grappling with how to
Tech Execs, Creators Mourn Former YouTube Chief Susan Wojcicki
Read More

Tech Execs, Creators Mourn Former YouTube Chief Susan Wojcicki

Forbes Business Breaking Tech Execs, Creators Mourn Former YouTube Chief Susan Wojcicki Antonio Pequeño IV Forbes Staff Pequeño is a breaking news reporter who covers tech and more. Following Aug 10, 2024, 11:21am EDT Share to Facebook Share to Twitter Share to Linkedin Topline Former YouTube chief and Silicon Valley pioneer Susan Wojcicki, who served

CNN’s Brianna Keilar walks back JD Vance swipe following backlash: He ‘served honorably in Iraq’

Originally Published by: AP downplays need for Kamala Harris to speak to press New Yorker reporter urges media to ask Harris actual questions Minnesota business owner tears into Walz for COVID, BLM riot leadership CNN anchor Brianna Keilar appears to be walking back her swipe against Trump running mate Sen. JD Vance, insisting he “served honorably”