WASHINGTON -- Marriott International Inc. is being sued by one of
the biggest owners of its hotels for alleged price fixing and
racketeering.
The owner, CTF Hotel Holdings, is an affiliate of New World
Development Co. in Hong Kong. The suit involves CTF-owned hotels in
the U.S. hotels that Marriott manages.
The lawsuit is under seal in U.S. District Court in Delaware
because it contains confidential details of CTF's management
agreement with Marriott.
At the heart of the matter is the way Marriott accounts for
spending at the hotels that it manages on behalf of CTF.
Marriott, which manages and franchises hotels under such brands
as Marriott, Renaissance and Ritz-Carlton, runs most all hotel
operations, including reservations, supply purchases and
housekeeping in return for a percentage of revenue and other
fees.
The suit also names Marriott's Renaissance Hotel Operating Co.
unit and Avendra LLC, a procurement arm that was spun off as a
separate company.
A Marriott spokesman said the company is reviewing the
lawsuit.
Skadden, Arps, Slate, Meagher & Flom LLP, the law firm
representing CTF, did not return a phone call seeking comment.