Farmington Hills Hotel Sues Marriott Over Loss of Franchise Agreement
Court documents show the national chain withdrew the "Courtyard by Marriott" name as of Jan. 31.
A Farmington Hills Marriott hotel at 12 Mile and Orchard Lake may be about to lose its affiliation with the national chain.
However, the company that took over Courtyard Detroit Farmington Hills in 2012 isn't giving up without a fight.
Crains Detroit reported Wednesday that, while the company declined to comment, Marriott's website is not taking reservations for the hotel past Jan. 31. The article noted the hotel is "still taking reservations".
A court document obtained by Farmington-Farmington Hills Patch shows 31525 W 12 Miles RD MI LLC, referred to as lender and mortgagee, filed suit against Marriott, Inc. Dec. 4, 2012 in Oakland County Circuit Court. The LLC's manager is a real estate investor from Brooklyn, NY.
The complaint alleges that Marriott refuses to recognize the rights of the hotel's new owner, who acquired the hotel through foreclosure, to continue operating as a Marriott franchise.
According to the complaint, Marriott had entered into a franchise agreement, valid through Dec. 31, 2012, with a receiver assigned to ensure that the hotel continued to operate after a previous owner defaulted on a loan. The chain refused to enter into an franchise agreement with the new owner, despite a commitment to invest "millions of dollars" to renovate the hotel, the complaint indicated.
A flurry of legal documents has been filed since the original complaint; the plaintiff's request for a temporary restraining order was denied on Wednesday.
The Farmington Hills hotel has hosted Greater Farmington Area Chamber of Commerce events and has provided hotel stay package prizes for the Farmington-Farmington Hills Foundation for Youth and Families Duck Race fundraiser, among other community activities.