The owner of the Modern Honolulu hotel in Waikiki has agreed to a settlement with former operator Marriott International, according to a July 6 Honolulu Star Advertiser report.
M Waikiki LLC agreed to pay an undisclosed amount to Marriott by July 30 after the hotel management firm dropped its lawsuit and withdrew opposition to a bankruptcy reorganization plan for the 353-room hotel, the newspaper said.
Filing for Chapter 11 protection last August, M Waikiki thwarted attempts by Marriott to regain control of the property through the courts after an early-morning takeover Aug. 28, during which M Waikiki replaced Marriott managers with employees from an affiliate of Hawaii-based management company Aqua Hotels & Resorts.
Marriott had sought $72 million in damages for what it contended was the breach of a 30-year contract with M Waikiki, according to the Star Advertiser.
Forming a partnership with boutique hotelier Ian Schrager, Marriott redesigned what was formerly the Yacht Harbor Tower of the Illikai Hotel and reopened the building as the Waikiki Edition in September 2010.
According to the report, bankruptcy Judge Robert Faris ruled in early June that $20.7 million was a reasonable estimate for how much Marriott should be paid for the lost management fees and expenses connected to its ouster at the Modern Honolulu.