Marriott sues franchisee for turning Queens hotel into migrant shelter
Marriott International has filed a $2.6 million federal lawsuit against a hotel in Queens for becoming a migrant shelter in violation of its franchise agreement.
The hotel chain claims the owners of the Pride Hotel in Jamaica had a 2015 deal with Marriott to operate a dual-branded Aloft and Element hotel at 149-03 Archer Avenue, according to the complaint filed last week in the Southern District of New York.
Marriott alleged the hotel’s owner, Pride Hospitality Group, made a “lucrative” agreement with the city to house migrants and asylum seekers “just months before” its slated Nov. 1 opening, after eight years of construction. In doing so, it broke the agreement and gave up the right to use Marriott branding.
By Aug. 22, 2023, Marriott says it confirmed the property — an 18-story hotel with 283 units near John F. Kennedy International Airport — was being used for migrant housing.
Pride Hotel nevertheless kept using Marriott’s signage and proprietary marks, the suit claims.
Pride Hotel sent Marriott a letter proposing an agreement to use the hotels for migrant housing. Marriott provided a list of requirements that needed to be satisfied in order to consider the change in use, but didn’t hear back for two months — while migrants continued to live on site, according to the suit. Pride Hotel meanwhile sent Marriott none of the franchise agreement’s required fees, the suit maintains.
Marriott says it sent Pride notices of default and provided opportunities to resolve the issue in November and December to no avail, before terminating the agreement on March 18.
Having Marriott signage on a migrant hotel has “caused and will continue to cause significant harm to Marriott,” the suit claims. In addition, Marriott says it would be tough for it to reenter the lucrative Jamaica market serving JFK, as it’s “already saturated with existing hotels.”
Pride Hotel could not immediately be reached for comment.
