Marriott International is suing Pride Hotel LLC for allegedly breaching their contract by converting a New York City hotel into a migrant shelter, violating their franchise agreement.
Marriott claims Pride Hotel failed to notify them of the plan to house migrants and asylum seekers, causing 'significant harm' to Marriott's brand.
Marriott alleges Pride Hotel continued to use Marriott's branding even after confirming the property's use as a migrant shelter, leading to $2.6 million in damages sought by Marriott.
Marriott has terminated the franchise agreement with Pride Hotel after unsuccessful attempts to resolve the issue, while Pride Hotel has yet to comment on the lawsuit.
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