| MINNEAPOLIS, MINN. (March 3, 1999)---Radisson Hotels Worldwide
today announced it is taking aggressive legal action against Ian Schrager�s
company, Empire Holdings, current owner of the Empire Hotel in New York,
to collect over $1 million in contractual obligations owed to Radisson
for franchise fees and other charges when the property operated as the
Radisson Empire Hotel New York. Radisson officials termed a lawsuit
filed by Empire Holdings as groundless and a ploy to avoid payment
of what it owes the company as the result of its purchase of the hotel
in May, 1998.
Radisson pledged an accelerated and vigorous pursuit of the outstanding
fees, citing the lawsuit filed by Empire Holdings as defamatory and false.
Radisson noted that its reservation�s performance for the hotel substantially
exceeded its contract.
Radisson�s system has been delivering more than 63 percent of occupancy
and 67.5 percent of the hotel�s sales in 1998. In fact, demand for
the Radisson Empire location has been so tremendous that Radisson�s corporate
reservation�s system has had to deny 1,000-4,000 requests for room nights
for the hotel per month. In addition, a recent independent survey
by HVS International, a noted hotel consulting firm based in Mineola, New
York, rated Radisson�s delivery from its central reservations system to
its franchisees as first in the hotel industry.
Radisson plans to continue to pursue its financial claim against Empire
Holdings and vigorously defend its rights and reputation. |
