Minor Vs. Marriott Lawsuit in Thailand Shows Risks of Chain Consolidation
Skift Take
Global chains and hotel owners will watch this case closely as it addresses the contentious issue of whether brand consolidation affects the ability of chains to drive business to a hotel.
In a case that underscores the challenges of a global hotel chain owning so many brands in a single market, Minor International is suing Marriott International for a “highly disappointing” performance of the JW Marriott Phuket Resort & Spa, which Minor fully owns and Marriott manages.
The lawsuit was filed on July 12 and a Thai court said on September 4 that the case can proceed.
The hotel suffered a 20 percent drop in gross operating profit in the first six months of 2019, compared to the same period last year, said the Bangkok-based hotel group, which is claiming an initial amount of $18.7 million (570.6 million baht) for the loss.
Though the amount being claimed is small, Minor, founded by American entrepreneur Bill Heinecke, is a major hotel owner, operator, and investor. If successful, other owners, for one, may use the same arguments against chains in the event their properties are not performing.
Minor alleged the decline in performance was “due in large pa
