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Marriott Wins Temporary Restraining Order Against Eden Roc LLLP

BETHESDA, Md.—A New York State Supreme Court judge signed a temporary restraining order (TRO) late yesterday, protecting Marriott International, Inc. and its affiliate Renaissance Hotel Management Company, LLC, the manager of the Eden Roc Renaissance Miami Beach hotel, from takeover attempts and other interference by the hotel owner until a hearing in mid-November.

Hotel owner Eden Roc LLLP attempted to takeover management of the hotel earlier this week with a surprise attempt and made an announcement that Eden Roc Management Company would be in control of the operations of the hotel. In a press release issued Oct. 14, Diego Ardid, vice president of Eden Roc LLLP, said, “Under Marriott’s management, Eden Roc lost market share despite its exceptional amenities and legendary reputation. Our exhaustive efforts to encourage Marriott to correct its numerous management defaults, and to preserve our partnership, proved fruitless, leaving us with no option but regain control and to put this property on the path to success.”

However, the attempted takeover ended when the Miami Beach police ordered the owner’s effort to cease.

“It’s inexplicable why ownership and its advisors would have engaged in this outrageous and reckless act that endangered our employees, the hotel and its economic prospects,” said Marriott’s General Counsel Ed Ryan, in an announcement . “The attempted takeover failed. It is business as usual at the hotel, and our employees continue to welcome guests with the exceptional service they have come to expect at the hotel.”

In a statement, Eden Roc LLLP said: “With regard to the press release issued yesterday concerning the management of the Eden Roc hotel, Justice Schweitzer of the Supreme Court of the State of New York, County of New York issued a temporary restraining order today permitting Renaissance to continue to manage the hotel while the court considers the merits of the parties’ arguments. While Eden Roc disagrees with the Court’s order, it will abide by it pending further court order.”

Pending the hearing on Marriott’s motion, the TRO enjoins the hotel owner, “its agents, and all other persons in its control” from taking “any action to remove or replace Renaissance as the manager of the Hotel and from any action to interfere with Renaissance’s management and operation of the Hotel,” and directs them to “allow Renaissance to perform its role as manager of the Hotel in accordance with the Management Agreement.”

In legal papers filed with the New York court, Marriott said that the hotel’s owner had “knowingly, wrongfully, and materially breached a long-term management agreement with Marriott. 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 and Marriott.” The company said it will continue to aggressively pursue its legal rights.

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