Marriott's bid for Starwood challenged by hotel owners

New York

MARRIOTT International Inc's acquisition of Starwood Hotels & Resorts Inc was challenged by the owners of hotels in Chicago and New York, who say the merger would violate exclusivity agreements.

Cityfront Hotel Associates Limited Partners, the owner of the Sheraton Grand Chicago, and Dream Team Hotel Associates LLC, which owns the Westin Times Square in New York, sued Marriott and Starwood in New York state court on Tuesday, arguing the merger would unfairly eat into their business.