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Marriott's Bid for Starwood Challenged in Suit by Hotel Owners

  • Owners of hotels in Chicago and New York filed suit Tuesday
  • Plaintiffs say deal would violate exclusivity agreements

Marriott International Inc.’s acquisition of Starwood Hotels & Resorts Inc. was challenged by the owners of hotels in Chicago and New York who say the merger would violate exclusivity agreements.

Cityfront Hotel Associates Limited Partners, the owner of the Sheraton Grand Chicago, and Dream Team Hotel Associates LLC, which owns the Westin Times Square in New York, sued Marriott and Starwood in New York state court Tuesday, arguing the merger would unfairly eat into their business. Sheraton and Westin are units of Starwood. The lawsuit seeks to block Marriott and Starwood from taking steps to finalize the purchase.