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Marriott regains control of Waikiki Edition

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Marriott International has confirmed that it has regained control of the Waikiki Edition hotel in Hawaii, US, from the property's owners following a ruling by a New York state judge.

It follows the Wall Street Journal's report on 29 August that owner M Waikiki LLC had seized control of the Honolulu property and changed its name to the Modern Honolulu. Marriott retook control of the Waikiki Edition within two days of the move, despite apparent efforts by its owner to file bankruptcy proceedings in a bid to halt the hotel group's case.

Ed Ryan, executive vice president and general counsel at Marriott International, said the move was self-defeating and one that wiped out a "significant value" of M Waikiki LLC's assets. Ryan also revealed that Marriott will seek "tens of millions of dollars" in damages; the latest development in an ongoing dispute between the hotel group and the Waikiki Edition's owner.

Earlier this year, law firm Bickel and Brewer confirmed that M Waikiki LLC had launched a legal challenge against Marriott and Ian Schrager - the partnership behind the Edition brand. According to the filing, it was alleged the 353-room Waikiki Edition had been a "failure" as a result of gross mis-management and Marriott's inability to successfully launch Edition.

M Waikiki LLC's lawsuit had sought to recoup tens of millions of dollars in damages, plus the removal of Marriott from a management contract for the Waikiki Edition. After regaining control of the property on 31 August, Ryan said that it was "astonished" at the hotel owner's decision to file bankruptcy proceedings.

Ryan said: "It is clear that this was a desperate step by the owner and legal advisers to circumvent the New York court's order returning the hotel to our rightful management and control. "They will obviously stop at nothing in the effort to escape from the contractual obligations they made to us when they signed the management agreement.

"We will vigorously pursue tens of millions of dollars of claims for damages to the brand and our company in bankruptcy court over time."

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Marriott International has confirmed that it has regained control of the Waikiki Edition hotel in Hawaii, US, from the property's owners following a ruling by a New York state judge.
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