Marriott Sues Hotel for Hosting Migrants
- Marriott International files a $2.6 million lawsuit against a franchisee hotel for violating their agreement.
- The hotel had been serving as a shelter for migrants.
- The legal dispute sheds light on contractual obligations in the hospitality industry.
Marriott International has initiated a federal lawsuit against the Pride Hotel in Queens, seeking $2.6 million for allegedly violating its franchise agreement by converting the hotel into a migrant shelter. The complaint, filed in the Southern District of New York, asserts that the hotel’s owners, Pride Hospitality Group, breached a 2015 agreement to operate a dual-branded Aloft and Element hotel at 149-03 Archer Avenue. Marriott claims that just months before the hotel’s scheduled opening on November 1, 2023, Pride Hospitality entered into a lucrative deal with the city to house migrants and asylum seekers. According to the lawsuit, the Pride Hotel, an 18-story establishment with 283 units located near John F. Kennedy International Airport, began housing migrants by August 22, 2023. Despite this shift in use, the hotel continued to display Marriott’s branding and proprietary marks. The suit details that Pride Hotel proposed an agreement to Marriott regarding the use of the hotel for migrant housing, but after Marriott outlined necessary requirements, there was no response for two months while the hotel continued to operate as a shelter. Marriott alleges that Pride Hotel failed to pay the required franchise fees and ignored notices of default sent by Marriott in late 2022. The hotel chain ultimately terminated the franchise agreement on March 18, 2023. Marriott contends that the continued use of its branding on a migrant shelter has caused significant harm and complicates its potential reentry into the competitive Jamaica market, which is already saturated with hotels. Pride Hotel has not yet responded to requests for comment.