The former owner of the Courtyard New York Manhattan/Upper East Side has filed a US$400 million lawsuit against Marriott International, alleging the hotel company conspired with labor unions to drive up costs at the property while leaving other Marriott hotels in New York City non-unionized.
Madison 92nd Street Associates LLC alleges that under the agreement between Marriott International, Bethesda, Maryland, and the New York Hotel and Motor Trades Council, AFL-CIO, the hotel’s operating costs increased by US$2 million annually. The property went bankrupt in 2011.
The legal dispute between Marriott and Madison 92nd Street Associates LLC is long-standing, as the former hotel owner first filed a lawsuit against the hotel’s operator, Marriott subsidiary Courtyard Management Corp. for negligent management in 2009. Madison 92nd Street Associates LLC alleges it was assured by Marriott that the hotel would not become unionized.
When contacted by HOTELS, Marriott International declined to commented on the lawsuit. New York Hotel and Motor Trades Council, AFL-CIO called it “without merit.”