Hotel Owner-Operator Sues Marriott

A lawsuit filed by CTF Hotel Holdings, Inc., against Marriott International and its procurement arm, Avendra, reached an impasse yesterday in the U.S. District Court in Delaware. The suit alleges that Marriott benefited unfairly from Avendra's activities, benefits that CTF, as a significant owner of Marriott hotels, should share in. The court yesterday announced it was putting the suit on hold while related issues are resolved. The suit is the most prominent of a number that have been brought by various hotel owners against management companies such as Marriott in recent weeks, seeking a greater share from a range of revenue sources. For travel buyers, these lawsuits are one more sign that the lodging industry-already beset with depressed occupancy rates and room revenues--is vulnerable as the start of the negotiating season for 2003 rates draws closer.