Last year, the owner of the Eden Roc hotel in Miami’s South Beach tried to take over the hotel and oust the Marriott’s on property management. This didn’t go to the plan and Marriott continued managing the property (you can read my piece here).
There was a piece on Bloomberg (you can read it here) that a New York court had made a decision that the owners of Eden Roc could remove Marriott as the manager of the property. Also, the piece states that the Marriott would have mismanaged the property after $300 million dollar investment that the owners had done.
Marriott released a statement this week that they would cease managing the property on July 11 and would seek compensation for terminating the management agreement early that was supposed to last until 2055.
New management company will take over the property on July 11 and it is unclear, what will be the situation with award reservations that are for beyond this date. The new management may decide not to honor them and Marriott would need to relocate the guests at their other properties.
Paid reservations are surely ok, but Marriott Rewards elite members are unlikely receive any benefits that are based on the status. Also, no stay credits or points for the spend.
It is not common that the owners are trying to oust the management company in the middle of the night by changing the locks, but this is what happened here in Eden Roc originally. Now, Marriott is departing as the management company of the property.