NEW YORK, Oct. 14, 2016 /PRNewswire/ -- Pryor Cashman LLP, on behalf of its client Eden Roc LLLP, issues the following joint press release:
Marriott International, Inc. ("Marriott") and Eden Roc, LLLP ("Eden Roc"), the owner of the Eden Roc Hotel in Miami Beach, Florida, jointly announced today an amicable resolution of their ongoing litigation concerning the hotel.
Marriott formerly managed the Eden Roc Hotel as a Renaissance brand hotel, starting in 2000, under a 30-year management agreement. In 2012, Eden Roc instituted legal proceedings claiming that Marriott breached the hotel management agreement at the property, and in 2013 elected to direct Marriott to exit the hotel before the expiration of the management agreement's term. At that time, the hotel ceased its affiliation with the Renaissance brand, and Marriott claimed against Eden Roc for prematurely terminating the management agreement.
Under the terms of today's resolution, the parties have agreed to resolve the dispute on the following terms: Eden Roc will pay Marriott $10 million on signing; the parties have agreed to enter into franchise agreements for three Residence Inn hotels in Mexico owned by principals of Eden Roc; if the hotels are not open for business within four years, Eden Roc has agreed to pay Marriott up to $10 million by the fifth anniversary of the settlement. Eden Roc has also agreed to pay Marriott an additional $11 million on the fifth anniversary of the settlement. Eden Roc has further agreed to offer additional franchise opportunities to Marriott which, if consummated, would offset all or part of this payment. If all three of the Residence Inn hotels are not opened within four years, the total payments under this settlement agreement will be up to $31 million.
The parties are pleased to have the litigation behind them, and look forward to working together on these and potentially other business opportunities.
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SOURCE Pryor Cashman LLP