Photo: Bloomberg
Marriott International is suing Pride Hotel LLC, one of its franchisees, for allegedly breaching their contract by converting a New York City hotel into a migrant shelter. The lawsuit was filed in federal court last week, with Marriott seeking over $2.6 million in damages.
According to the complaint, Pride Hotel violated its franchise agreement with Marriott by entering into a contract with the City of New York to house migrants and asylum seekers at a property in the Jamaica neighborhood of Queens. The property was supposed to operate as a dual-branded Aloft and Element hotel under Marriott's brand.
Marriott alleges Pride Hotel failed to notify them of their plans and did not remove Marriott's trademarks and branding before opening the hotel as a migrant shelter. The hotel chain claims this has caused "significant harm" to its brand.
In addition, Marriott alleges Pride Hotel entered into the agreement with the city "just months before" the hotel's slated opening in November 2023, after eight years of construction. Marriott also claims that Pride Hotel continued to use Marriott's signage and proprietary marks even after the property was confirmed to be used for migrant housing in August 2023.
Marriott has reportedly sent Pride Hotel notices of default and provided opportunities to resolve the issue but to no avail. The franchise agreement was terminated on March 18, 2024. Pride Hotel has not yet commented on the lawsuit.