Posted by Ric Garrido

A New York judge ordered the Modern Honolulu, formerly Marriott’s Waikiki Edition until the hotel owners unilaterally rebranded last weekend and kicked out Marriott management, to be returned to Marriott’s control by 2:30pm local Hawaii time Wednesday, August 31.  See Loyalty Traveler post: Divorce Hawaiian Style at Marriott Waikiki Edition (Aug 29).

About 60 former employees and managers of Marriott’s Waikiki Edition who had lost their jobs in the hotel owners move last weekend hoped to return to work yesterday. The team of Marriott executives who arrived to retake the hotel were greeted with the news that hotel owners M Waikiki had just filed for bankruptcy protection. Apparently this legal maneuver keeps the Modern Honolulu in place despite the New York judge’s order to reinstate Marriott management and the Waikiki Edition hotel.

The most recent chapter in the Waikiki Edition saga is certainly not the final chapter in the Battle for Waikiki.

News Sources:

Bloomberg – Marriott Says It’s Given Back Control of Waikiki Edition Hotel in Hawaii – Nadja Brandt (Aug 31, 2011)

Bizjournals.com Pacific Business News – Owners Bankruptcy filing blocks Marriott from resuming management of Waikiki hotel (Aug 31, 2011)

Hawaii News Now

4 Responses

  1. While this is outside of what I come visit your blog for, it offers a view of what happens in the industry.

    I’m interested in how Marriott and M Waikiki deal with bookings, especially award stays in this case. M Waikiki would have no reason to give Marriott points for your stay or give you a Marriott award stay, but they would also want your goodwill. Similar for Marriott, especially if they already deducted the points for an award stay from your account. Throw in Chase with their Marriott card (“It was Marriott when I booked it/started my stay/etc, so I should get the bonus points.”) and it gets even more complicated.

    I have the feeling that M Waikiki planned on voiding the Marriott contract through bankrupcty all along and wanted their new managers in place beforehand. They had already filed a court case against Marriott which is what you do for breach of contract. Breaking the contract on their side just gives ammunition to Marriott. Maybe it wasn’t looking good in court.

    I’m also curious what “illegal acts” Marriott thinks M Waikiki did. Breach of contract I can see. Illegal I can’t.

  2. @Charles – This is not what I planned to be my main post today, but I am busy working in a public school first grade classroom all day, then going to a winery to hear a Journey cover band this evening.

    Tomorrow I’ll get back to loyalty news people can use.

    Comment by Ric Garrido on September 1st, 2011 at 9:14 am
  3. It’s fine. Just an interesting diversion. I’m so used to your detailed analysis of offers, I’m kinda waiting for the detailed analysis of how stuff like this affects travellers. :-)

    Sounds like you may need the winery this evening. :-)

  4. Marriott said that guests holding reservations at the Waikiki Edition could call Marriott Customer Care at 800-559-9352 to receive more information and to change their reservations to other Marriott International hotels.

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