Sheraton Operating Corporation to Appeal Ruling on Awarded
WHITE PLAINS, N.Y.--November, 2011--Sheraton Operating Corporation (Sheraton), an affiliate of Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT), said today that it would appeal the ruling of a state court in White Plains, NY, that awarded damages to Castillo Grand, LLC (Castillo), the owner of the former St. Regis Hotel and Residences in Ft. Lauderdale (Hotel).
The case involved competing claims for breach of contract relating to the construction, interior design and delayed completion of the Hotel and the subsequent termination of the management contract between the parties. The Hotel belatedly opened in May 2007, but ceased to be managed by Sheraton or affiliated with the St. Regis brand of luxury hotels and resorts in August 2008. The state court ruling came more than a year after a nine-week trial in mid-2010. The protracted, five-plus year litigation began in federal court and ended in the New York state court system.
The Hotel owner, Castillo, had sought more than $104 million in damages. However, New York State Supreme Court Justice Alan D. Scheinkman awarded approximately $32 million in damages, plus interest, to Castillo and $555,000, plus interest, to Sheraton for its claims against Castillo.
“We are disappointed in, and respectfully disagree with, the trial court’s decision and we intend to vigorously pursue an appeal seeking a reversal of the decision,” Sheraton said in a statement.
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,071 properties in 100 countries and territories with 145,000 employees at its owned and managed properties. Starwood Hotels is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, and the recently launched Aloft®, and Element SM. The company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwoodhotels.com.
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions, including the duration and severity of any global or regional economic downturns, the availability of financing alternatives at acceptable terms, the impact of war and terrorist activity, business and financing conditions, foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Starwood Hotels & Resorts Worldwide, Inc.
Jay Koval, (914) 640-4429
KC Kavanagh, (914) 640-8339
Abandons the Fort Lauderdale Hotel Market 14 Months after Opening the
St. Regis Fort Lauderdale Resort, Cites Contract Dispute with the
Castillo Grand Ownership Group / July 2008