Starwood Hotels and Resorts in multimillion-dollar dispute victory

Starwood Hotels and Resorts Worldwide has claimed victory in a long running legal dispute, after being ruled not liable for $200m (£106m) in damages.

Kalmia Investors had been after the cash from the partnership in which it is an investor, a process that has been ongoing for 17 months.

Kalmia was the largest limited partner of Starwood and Westin Hotels Partnership (WHLP), which owned both the Starwood-managed Westin St. Francis Hotel in San Francisco and the Westin Michigan Avenue Hotel in Chicago.

The properties were sold in 2000 and 2005 respectively.

Kalmia claimed against WHLP and Starwood and Westin Realty Corporation -the general partner of WHLP, for lost profits, recovery of management fees, punitive damages and the alleged lost value for the sale of the two hotels.

However, a three-person arbitration panel threw out Kalmia’s claims stating that the total damages sought by the company were “inflated, unsupported and lacking in credibility”.

It also said that Kalmia’s main theory of damages were “entirely speculative and highly improbable”.

Starwood Hotels sells 35 worldwide properties in $4b deal >>

Starwood completes Le Meridien brand acquisition >>

By Louise Durack

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.