The owner of the first lifestyle hotel by Marriott International and legendary hotelier Ian Schrager, Waikiki Edition, has filed a lawsuit against both parties, claiming that they have not done enough to make the brand successful.
M Waikiki LLC is suing Schrager and Marriott, according to a report in The Wall Street Journal.
The amount of damages sought was not specified but the owner is also requesting to terminate the 30-year management deal with Marriott.
According to the lawsuit, Schrager has been uninvolved in the Edition brand, and in a further twist, the filing was made the same week that the Shrager launched a new brand, Public, which in many ways rebukes the boutique hotel concept.
Marriott said in a statement it was "surprised and perplexed" by the accusations and will defend the lawsuit vigorously.
"Across the spectrum, Edition has been one of the most positively received new Lifestyle hotel brands of the 21st century. Innumerable stories in major global media and customer reviews speak for themselves. Edition, and specifically the Waikiki Edition, have generated tremendous excitement, and both we and Ian Schrager are confident of the hotel’s and Edition's success."
There are currently two Edition hotels in operation, although when launched in 2007 it was expected there would be 100 hotels in 10 years.
Edition projects have been announced for Miami, Bangkok, Mexico City, London and Barcelona.
According to the lawsuit, Edition Waikiki has lost about US $6 million since its October opening, posting average occupancy of about 30% in the fourth quarter.